The Monetary Authority of Singapore (MAS) has announced plans to amend the Payment Services Act (PS Act) to expand the regulatory scope of services related to digital payment tokens (DPTs). ).
According to the announcement on April 2, Singapore's central bank said it will bring a number of activities under the scope of PS Act management, including: Providing custody services to DPT; Facilitate token transfers and exchanges and Facilitate cross-border remittances.
MAS also clarified that the law applies to situations where the service provider does not directly own the funds or the funds are not accepted or received in Singapore.
In addition, MAS said the new updates will allow the central bank to impose additional requirements on DPT service providers such as Anti-Money Laundering and Anti-Terrorism Financing; User Protection and Financial Stability.
The modifications will be implemented in stages, starting from April 4. MAS will make transitional arrangements for organizations affected by the extension.
MAS encourages these organizations to notify the central bank within 30 days and apply for a license within six months from April 4 if they wish to continue operating pending a review.
MAS also announced that companies that do not comply will be closed down. In addition, regulations related to protecting assets of customers using payment token services will be amended such as Segregating customer assets and placing them in a trust account; Maintain books and records; Ensure security for customer assets.
The amendments to user asset protection will take effect six months from April 4.
MAS's move comes as many cryptocurrency companies are applying for licenses to provide services in the Singapore market. Organizations such as Crypto.com, Coinbase and Ripple have been granted full payment operating licenses in the country.