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<p class="is-style-lead">Singaporean authorities have drafted plans to make it mandatory for crypto exchanges to store their customers’ funds in a trust. The legislation will take effect before the end of the year.&nbsp;</p><h2 class="wp-block-heading" id="mas-ups-its-investor-protection-push">MAS ups its investor protection push&nbsp;</h2><p>As part of plans to foster consumer protection within its digital assets space, the Monetary Authority of Singapore (<a href="https://crypto.news/singapore-takes-the-lead-in-establishing-norms-for-designated-digital-currency/" rel="noopener noreferrer nofollow">MAS</a>) has stated that crypto exchanges and other market participants in the region must separate users’ funds from their operating capital.</p><p>According to sources, Singapore-based crypto projects must store their customers’ funds in a trust before the end of 2023. The regulator has been <a href="https://crypto.news/singapore-regulator-plans-to-expand-scope-of-crypto-regulations/" rel="noopener noreferrer nofollow">exploring</a> several consumer protection measures since the scandalous collapse of <a href="https://crypto.news/sam-bankman-fried-to-face-trial-only-on-8-initial-charges/" rel="noopener noreferrer nofollow">Sam Bankman-Fried</a>’s FTX last year.</p><p>You might also like: <a href=" https://crypto.news/cryptocurrency-providers-singapore-regulation-mas/" rel="noopener noreferrer nofollow"> Cryptocurrency providers in Singapore will now face regulation under MAS </a></p><p>Similarly, the MAS will officially ban crypto lending and staking activities for retail investors.&nbsp;</p><p>Despite granting regulatory <a href="https://crypto.news/singapores-mas-grants-license-to-crypto-com/" rel="noopener noreferrer nofollow">approval</a> to a slew of bitcoin (<a href="https://crypto.news/bitcoin-price/" rel="noopener noreferrer nofollow">BTC</a>)-linked businesses in recent months, the regulators have stated categorically that implementing amenable regulatory frameworks alone may not be the perfect way to protect consumers from the inherent risks in digital asset trading.&nbsp;</p><figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper"><iframe title="Crypto retail investors to take risk test under proposed rules by MAS | THE BIG STORY" src="https://www.youtube.com/embed/AE1OMPJEipI?feature=oembed"></iframe></div></figure><p>As such, the agency has urged consumers to exercise utmost caution when interacting with these super-volatile digital assets. If successfully implemented, the proposed measures will strengthen Singapore’s crypto space and curb funds <a href="https://crypto.news/what-have-we-learned-from-ftxs-hearing/" rel="noopener noreferrer nofollow">comingling practices</a> by market participants to a large extent.</p><p>Read more: <a href="https://crypto.news/circle-secures-in-principle-regulatory-approval-from-singapores-mas/" rel="noopener noreferrer nofollow"> Circle secures in-principle regulatory approval from Singapore’s MAS </a></p>

Singapore to mandate crypto exchanges store client funds in a trust

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