Crypto News: Singapore Seeks To Ban Crypto Lending, Staking

Crypto News: The global digital asset industry is trading under increased uncertainty as the top financial watchdogs are still engaged in building regulations around it. In a bid to safeguard investors’ funds, the Monetary Authority of Singapore (MAS) is seeking to inflict a trust requirement on crypto exchanges.

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Singapore To Set Tough Crypto Rules For Investors?

According to reports, the MAS on Monday asked the cryptocurrency exchanges operating in the country to move customer assets in trust. The crypto exchanges are required to follow the guidelines and shift assets before the end of 2023. This move comes in to protect the crypto assets from the implosions like FTX disaster.

It added that Singapore is also moving ahead with a motion to ban lending and staking programs for retail investors. However, the Monetary Authority of Singapore launched a deliberation on it last October and reached the conclusion that it needs to tighten its regulatory framework for crypto assets linked operations.

Can MAS Protect Users From Future FUD?

The MAS stated that Regulations cannot always protect investors from losses when the market holds high risk and speculative nature. It added that the customers are required to exercise caution while trading. It should be noted that this development comes in when countries like Hong Kong are trying to entice more global participation.

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The financial watchdog mentioned that the digital payment token (DPT) service providers received wide support in order to safeguard users’ funds. The proposed rules direct the firms to check the daily settlement of customers’ assets and maintain updated records. However, the registered crypto exchanges also have to ensure that the custody function runs completely from the other business units.

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Ashish Kumar

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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