MAS expands crypto regulation for better oversight, including custodial and cross-border services.
New MAS rules align with global AML/CFT standards, enhancing financial stability and user protection.
DPT providers must segregate assets and guard against cyber threats, with guidelines effective from Oct 4.
In a step to tighten supervision of the growing crypto market, the Monetary Authority of Singapore (MAS) has declared a series of amendments to its Payment Services Act and related laws.
The Monetary Authority of Singapore (MAS) today introduced amendments to the Payment Services Act (PS Act) and its subsidiary legislation to expand the scope of payment services regulated by MAS, and to impose user protection and financial stability-related requirements on…
— Wu Blockchain (@WuBlockchain) April 2, 2024
Effective April 4th, the regulatory scope will be extended to cover a larger spectrum of digital payment token (DPT) services. This includes custodial services, the facilitation of DPT transmissions, and cross-border money transfers, even when transactions do not involve the receipt of funds in Singapore.
This regulatory expansion is part of MAS’s efforts to align with global standards on anti-money laundering (AML) and countering the financing of terrorism (CFT). It also introduces robust user protection measures and ensures financial stability within the sector.
Concurrently, under the new framework, DPT service providers will now face stricter requirements aimed at safeguarding consumer interests and the integrity of the financial system. Key among these obligations is the requirement for providers to segregate customers’ assets and maintain accurate books and records.
Additionally, they must secure the integrity and security of customers’ assets against potential cyber threats and operational risks. These guidelines are set to be enforced on October 4, marking a critical step in enhancing consumer protection in the digital age.
To facilitate a smooth transition to the enhanced regulatory regime, MAS has laid out transitional arrangements for entities that find themselves under the expanded scope of regulation. These include the requirement to notify MAS within 30 days and to submit a license application within six months from the commencement of the amendments. This approach reflects MAS’s intention to ensure compliance while minimizing disruption to the operations of existing DPT service providers.
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