Singapore is introducing stricter regulations for companies providing cryptocurrency services and digital payment tokens (DPTs). In an announcement made on Tuesday, the Monetary Authority of Singapore (MAS) decided to expand the scope of regulated payment services by making amendments to the Payment Services Act and related regulations.
According to the statement, these changes will be implemented gradually starting from April 4th. Notably, MAS stated that the new regulations will cover custody services for DPTs, facilitation of DPT transfers, and cross-border money transfers “even if they are not accepted or received in Singapore.”
With these new regulations, MAS will have the authority to impose additional requirements on DPT service providers in areas such as anti-money laundering and countering the financing of terrorism (AML/CFT), user protection, and financial stability. However, MAS will provide “transition arrangements” for companies operating under the expanded regulatory scope, requiring them to notify the regulator within 30 days and apply for a license within six months from April 4th.
Angela Ang, a former MAS regulator and senior policy advisor at blockchain intelligence firm TRM Labs, stated that this expansion brings much-awaited regulatory clarity that has been expected since 2021. Regarding consumer protection, MAS clarified in a guide published on Tuesday that DPT service providers must segregate customer assets, keep proper records, and ensure the integrity and security of customer assets. This guide is expected to take effect on October 4th.
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