Singapore to require crypto firms to put user assets into trusts by year-end

Singapore to Require Crypto Firms to Put User Assets in Trusts

Singapore is introducing a new regulation that will require cryptocurrency firms to put user assets in trusts by the end of the year. This is part of an effort to protect consumers and ensure that the cryptocurrency industry is operating in a safe and secure manner.

The new regulation requires crypto firms to appoint a trust company to manage user assets, with the trust company responsible for safeguarding the assets and ensuring that they are used in accordance with the customer’s instructions. The trust company must also be regulated by the Monetary Authority of Singapore (MAS).

The MAS has also stated that it will be monitoring the cryptocurrency industry closely and taking action against any firms that do not comply with the new regulations. The MAS has also warned that it will take enforcement action against any firms that do not put user assets into trusts.

Benefits of Putting User Assets in Trusts

Putting user assets in trusts will provide a layer of protection for consumers, as the assets will be held in a trust account that is managed by a third-party trustee. This will ensure that the assets are secure and that the cryptocurrency firms are operating in a responsible manner.

Additionally, this regulation will help to create a more transparent and secure environment for the cryptocurrency industry in Singapore.

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