Singapore has announced plans to impose a trust requirement on cryptocurrency exchanges in a bid to instill confidence in the cryptocurrency market and protect investors from potential losses. The new regulation, which will take effect from January 2023, will require crypto exchanges to hold their customers’ assets in a separate legal entity that is licensed and regulated by the Monetary Authority of Singapore (MAS).
The move is aimed at preventing the commingling of customers’ assets with the exchanges’ own funds, which could expose them to risks such as fraud, theft, hacking, or insolvency. The trust requirement will also ensure that customers have a legal claim over their assets in the event of a dispute or a liquidation of the exchange.
Singapore is one of the most crypto-friendly jurisdictions in the world, with a clear and comprehensive regulatory framework for digital assets. The trust requirement is part of the Payment Services Act, which was enacted in 2019 and covers various aspects of crypto activities, such as licensing, anti-money laundering, consumer protection, and cyber security.
Meanwhile, China is continuing to promote the adoption of its central bank digital currency (CBDC), the digital yuan, across various sectors and regions. The latest initiative comes from Jinan, the capital city of Shandong province, which announced that all of its bus routes now accept digital yuan payments. Moreover, passengers who pay with the CBDC will receive discounts on their fares.
The digital yuan is China’s official digital currency, issued and controlled by the People’s Bank of China (PBOC). It is designed to complement and eventually replace the physical yuan, and to enhance the efficiency and security of the country’s payment system. The digital yuan is currently undergoing extensive trials in several cities and provinces, as well as in various scenarios such as retail, transportation, tourism, and cross-border payments.
China is widely regarded as the global leader in CBDC development, having started its research and experimentation since 2014. The PBOC has not yet announced a formal launch date for the digital yuan, but it is expected to be ready before the 2022 Winter Olympics in Beijing.
