MAS Singapore announced new requirements for digital payment token (DPT) service providers. In particular, the agency will require DPT service providers by the end of the year to transfer this group of digital assets in trust to an independent trust company.<br
According to the regulator, this will reduce the risk of loss or misuse of customer assets, as well as facilitate their recovery in the event of insolvency of the DPT provider. In addition, MAS restricts the rights of DPT providers to facilitate credit and token storage by their retail customers.
New rules will require DPT providers to keep separate records of digital assets. Specifically, to separate customer assets from our own assets and assets held in trust, and to ensure that the custody function is operationally independent from the services of other core business units.
Similar to the banking organization, MAS will require DPT providers to perform daily reconciliations of customer assets, maintain operational controls, and reflect financial transactions on the appropriate ledgers.
Earlier, Singapore’s financial regulator announced Project Guardian, an initiative to develop standards for digital assets allowed for purchase, exchange and storage transactions within the city-state.