In the latest regulations issued by the Monetary Authority of Singapore (MAS), all cryptocurrency exchanges are required to set up statutory trusts to isolate the assets of custodial customers. This new regulation will have a far-reaching impact on the cryptocurrency industry. This move aims to strengthen financial stability and protect the interests of investors, while also paving the way for the compliance development of the entire industry.

Cryptocurrency exchanges under the new regulations: the importance of statutory trusts

Under the supervision of the Monetary Authority of Singapore, cryptocurrency exchanges must set up statutory trusts to isolate the assets of custodial customers, which means that exchanges can no longer mix customer assets with their own assets, ensuring the security and transparency of customer assets. The implementation of this regulation will increase the sense of responsibility and transparency of exchanges and help build a healthier and more sustainable cryptocurrency trading environment.

Changes and challenges in the cryptocurrency market

With the implementation of the new regulations, the cryptocurrency market will usher in a change. Since customer assets need to be isolated by setting up statutory trusts, exchanges need to upgrade their systems and make compliance adjustments to meet the regulatory requirements of the Monetary Authority. This will place higher requirements on the operation and management of exchanges, and will also prompt all parties in the industry to strengthen risk control and compliance awareness to adapt to the new regulatory environment.

Investor protection and market trust

Cryptocurrency exchanges under the new regulations will pay more attention to investor protection and ensure the security of customer assets by setting up statutory trusts. This will not only help improve investors' trust in the market, but will also prompt exchanges to strengthen internal management and risk control mechanisms, thereby reducing the occurrence of market manipulation and fraud. Investors will have more confidence in participating in cryptocurrency transactions in such a more standardized and transparent market environment.

Financial stability and industry development

The implementation of the new regulations will help improve the financial stability of the entire cryptocurrency industry and reduce the occurrence of systemic risks. On the basis of complying with statutory trust requirements, cryptocurrency exchanges will better respond to market fluctuations and risk events, which is conducive to the long-term healthy development of the industry. The supervision of the Financial Administration will bring more order and norms to the industry and create a safer and more reliable trading environment for investors and exchanges.

Looking to the future: Development trends of the cryptocurrency industry

With the implementation of the new regulations, the cryptocurrency industry will usher in a more standardized and transparent development environment. Cryptocurrency exchanges will continue to improve their management level and compliance capabilities to adapt to regulatory requirements, and will also strengthen communication and cooperation with the Financial Administration to jointly promote the healthy development of the industry. Against the backdrop of continuous innovation in financial technology, the cryptocurrency industry is expected to usher in more compliance and regulatory changes, bringing more opportunities and challenges to investors and the market.

Conclusion

The statutory trust regulations for cryptocurrency exchanges issued by the Monetary Authority of Singapore will bring order and norms to the entire industry, prompting exchanges to strengthen management and risk control, and enhance investor protection and market trust. The implementation of this measure marks the cryptocurrency industry's move towards a more standardized and mature development stage, laying the foundation for the industry's long-term and stable development. In the future development, the cryptocurrency industry will continue to adapt to regulatory requirements, pursue higher compliance standards, and jointly promote the industry to develop in a healthier and more sustainable direction.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Coin Circle (120Btc.com) News: The Monetary Authority of Singapore (MAS) today (3) publicly announced a new measure to require that customer assets be held in a statutory trust by the end of 2023.

According to the official press release, after the public consultation on strengthening investor protection and market integrity supervision measures for cryptocurrency service providers (DPT) in October 2022, the main demands include:

 Separate customer assets from their own assets and hold them in trust

 Protect customer funds

 Perform daily reconciliation of customer assets and keep appropriate books and records

 Maintain access and operational control over Singapore customer DPTs

 Ensure that the custody function is operationally independent from other business units

 Clearly disclose to customers the risks involved in holding their assets by DPT service providers.

Other relevant regulatory measures on cryptocurrencies

In addition, the MAS press release also mentioned:

 MAS is now seeking public feedback on the draft legislative amendments to the Payment Services Regulations to implement these requirements. MAS will also issue guidelines in due course to support consistent implementation by the industry.

 MAS will continue to implement the proposal to restrict DPT service providers from facilitating DPT lending or pledging to their retail customers, as these activities are generally not suitable for the retail public. (MAS will monitor market developments and consumer risk awareness at any time and will take measures to ensure that our measures remain balanced and appropriate.)

 MAS reminds the public that given the extremely high risk and speculative nature of DPT trading, regulation alone cannot protect consumers from all losses.

"Consumers must continue to exercise extreme caution when trading DPTs as they may lose their assets. While segregation and custody requirements will minimize the risk of loss of customer assets, consumers may still face significant delays in recovering their assets if the service provider becomes insolvent. Consumers must also remain vigilant and not deal with unregulated entities, including overseas entities, as they may lose all their assets."