The crypto industry has suffered some setbacks in Singapore after the country implemented policies that affect lending and staking for crypto users. According to the latest update from the Singapore Regulatory Authority, restrictions have been placed on the country's retail lending and staking of cryptocurrencies.
In Asia, there is a mixed approach towards cryptocurrencies, with some countries welcoming more crypto users while others are taking steps to restrict crypto-related activities. Singapore has recently opted for the latter by imposing a ban on the staking and lending of cryptocurrencies for retail customers. The government has cited concerns over potential scams and fraud as the reason for implementing this policy.
"MAS will also restrict DPT service providers from facilitating lending and staking of DPT tokens by their retail customers," the authority said in their press release.
Although this is not a total Singapore crypto ban, it would limit a lot of activities for many crypto users. But this is not the only policy Singapore has for its citizens. They have also announced that from the end of 2023, the Monetary Authority of Singapore (MAS) will require every firm operating an exchange to move their customers' funds to a Trust. What is their reason for this policy? The Singapore government is trying to avoid a similar FTX situation where the crypto exchange mixed customers' funds with the company's account.
"The Monetary Authority of Singapore (MAS) today announced new requirements for Digital Payment Token (DPT) service providers to safekeep customer assets under a statutory trust before the end of the year," MAS said.
Thailand Follows Singapore's Footsteps
Many consider Singapore's crypto adoption rate to have suffered some depreciation after the new policies from the South East Asian country. However, Thailand is keen on following in their footsteps after the country, through its Securities and Exchange Commission, announced they will be banning staking in the country too. Basically, Thailand is trying to ban deposit services that offer returns to depositors and lenders in the country.
In their SEC announcement, the country said they are set to implement the "Prohibition of digital asset business operators providing services or supporting deposit taking & lending services, subject to certain exceptions as specified in the Notification."
The SEC also mentioned that advertising any crypto deposit or staking services in the country is now forbidden.
"It is forbidden to advertise or persuade the general public or do any other act in the manner of supporting the deposit taking & lending service under ( 2.1 ) and ( 2.2 ) of the service provider or other persons," their press release said.
Hong Kong Building a Welcoming Environment
In contrast to the US, China, and other South East Asian countries, Hong Kong is embracing crypto establishments and taking measures to protect investors' funds. The Hong Kong Securities and Futures Commission, has announced its commitment to establishing a basic rule that ensures the safety of funds in the autonomous community.
"Our regulatory approval for Hong Kong virtual assets follows the principle of ‘same business, same risks, same rules. The aim is to provide solid protection to investors and manage the main risks associated with these assets," SFC Hong Kong said.