Singapore has introduced what are believed to be stricter regulations for companies engaged in cryptocurrency or digital payment token (DPT) services.
The Monetary Authority of Singapore announced on Tuesday that it will expand the scope of regulated payment services by introducing amendments to the Payment Services Act and its subsidiary laws.
According to the statement, the revised bill will be implemented in stages from April 4th. Specifically, MAS noted that the new rules cover DPT custodial services, facilitation of DPT transmission, and facilitation of cross-border remittances between countries “even where money cannot be sent or received in Singapore.” .
“The amendments will enable MAS to impose anti-money laundering, anti-terrorist financing, user protection and financial stability requirements for DPT service providers,” MAS said.
MAS will provide a “transitional arrangement” for those operating under the expanded regulatory scope, but must notify the regulator within 30 days and submit a license application within six months from April 4. He added that it was necessary.
“This expansion has been in the works since 2021 and will bring much-needed regulatory clarity to crypto custody stakeholders in Singapore,” said Angela, former MAS regulator and senior policy advisor at blockchain intelligence firm TRM Labs.・Mr. Anne told The Block.
“I don’t think any of the changes are unexpected or surprising, so to the extent that these changes could lead to some crypto exchanges and companies exiting Singapore, that decision has probably been made for some time. It would have been done in 2017,” said lawyer Kelvin Rowe. Professor at the National University of Singapore.
consumer protection
In the guidelines published on Tuesday, MAS detailed the provisions regarding consumer protection measures that DPT service providers must take under the Payment Services Act.
These measures include segregating customer assets, maintaining proper books and records, and ensuring the integrity and security of customer assets. The guidelines are scheduled to come into effect on October 4th.
(Updated: Added comments from Ang and Low)
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