Crypto Adoption Increases, Singapore Requires Cryptocurrency Companies To Save User Assets

Singapore has tightened crypto rules for exchangeers. (Photo; Doc. Yellowblock)

JAKARTA - The Monetary Authority of Singapore (MAS) will reportedly implement new measures to regulate the cryptocurrency sector in the country. One of these steps is requiring cryptocurrency companies to store client assets in a trust that has been determined by the end of 2023.

This was done in response to a crisis involving FTX a few months earlier, in which many investors suffered heavy losses due to lost user funds and fraudulent practices by the exchange.

In addition, MAS will also prohibit domestic cryptocurrency organizations from offering staking and lending services to retail investors. This step is in line with the actions taken by the Thai Securities and Exchange Commission (SEC). Singapore Regulators aim to provide maximum customer protection and create a strong regulatory framework in the cryptocurrency industry.

Despite the crisis involving FTX, Singapore remains a rapidly growing region in terms of cryptocurrency adoption. Many companies, such as Gemini, have attracted attention and increased their presence in Singapore. Singapore's approach to the cryptocurrency sector has also received praise, deemed to have a framework that unites consumer protection, market integrity, and innovation.

The adoption of cryptocurrencies in Singapore has also soared in recent years. A large number of Singaporeans have bought and owned digital assets, with 43 percent of the population reporting owning digital assets. Many of them are involved in investing in cryptocurrencies to diversify their portfolios. Bitcoin remains the most popular digital asset in Singapore, followed by Ethereum.

The new regulation imposed by MAS is expected to provide additional security for cryptocurrency market participants in Singapore. It also reflects efforts to maintain market integrity and protect investors from possible risks related to this sector.