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Singapore Tightens Regulations on Crypto Sector
The Monetary Authority of Singapore (MAS) has announced new regulations under the Payment Services Act, set to be implemented in stages starting from April 4. These updates will expand the scope of regulated payment services to include the safekeeping and transfer of digital payment tokens, as well as facilitating international money transfers.
Empowering the Regulator
The MAS emphasized that the amendments will grant the regulator the authority to impose requirements related to anti-money laundering, countering terrorism financing, user protection, and financial stability on digital payment token (DPT) service providers.
Transitional Arrangements
Entities conducting activities falling under the expanded scope will be required to inform the MAS within 30 days and submit a license application within six months. The regulator will provide transitional arrangements to facilitate compliance with the new regulations.
Positive Reception
Angela Ang, a former MAS regulator and senior policy advisor at TRM Labs, commended the move, stating that the changes provide clarity for crypto custody services in Singapore, thereby enhancing regulatory transparency.
Consumer Protection and Market Involvement
In addition to regulating digital payment token service providers, the MAS has prescribed rules to protect consumers and ensure the integrity of the digital currency market. These rules mandate the segregation of customers’ assets, accurate recording of asset activities, and safeguarding of the assets.
Operational Guidelines
Effective from October 4th, the guidelines aim to uphold customer protection and market integrity within the digital currency space, reflecting Singapore’s commitment to establishing a robust policy regime for the cryptocurrency community.
Setting the Tone for Regulation
The amendments to the Payment Services Act underscore Singapore’s dedication to fostering a regulatory environment that prioritizes customer welfare, service quality, and addresses potential threats and illicit operations within the cryptocurrency sector.
These developments signal Singapore’s proactive approach to regulating the burgeoning cryptocurrency industry, aligning with global efforts to enhance oversight and consumer protection in the digital asset space.
📎 Read the original article on co.uk
