Singapore expanded the scope of its digital-asset rules to cover the custody of tokens as well as more firms involved in fund transfers, part of the city-state’s effort to develop an institutional hub for the industry.

The changes to the Payment Services Act take effect in stages from April 4 and seek “to impose user protection and financial stability-related requirements,” the Monetary Authority of Singapore said in a statement yesterday.

Singapore was stung by blowups in 2022 stemming from unfettered crypto speculation and has since reshaped regulations to spur productive uses of blockchain technology.

These include the potential for more efficient payments as well as making illiquid assets easier to buy and sell.

At the same time, Singapore has sought to curb crypto speculation by retail investors.

Bloomberg