The Cryptocurrency Revolution in #Singapore began when the Monetary Authority (MAS) made significant changes to the Payment Services Act (PSA). Thereby expanding powers and enhancing user protection.
The Cryptocurrency Revolution in Singapore
These amendments are in line with Singapore's commitment to strengthening its position as a crypto-friendly hub. Regulatory frameworks promote innovation while prioritizing investor protection.
These moves have turned this lion island nation into a destination for many names like Coinbase, Ripple and other companies. Singapore is an ideal starting point if you want to expand into the Asian market.
MAS has added three new digital payments (DPT) services to PSA. The list includes custody services, support for transferring money between accounts, exchanges and cross-border money transfers.
Notably, in the last two categories, the service provider does not need to own or accept digital assets within Singapore.
Under the new regulations, DPT service providers must establish trust accounts for customer funds. They also need to implement strong security measures to protect assets.
In addition, all companies must comply with anti-money laundering and anti-terrorist financing regulations. They must also meet user protection and financial stability requirements.
Implementation schedule
The revised regulations will take effect from April 4.
However, the regulator has given existing service providers an extension under a “transitional agreement”. These suppliers must notify MAS within 30 days. They also need to apply for a license within a 6-month period. Otherwise they will not be able to continue operating in the country.
MAS requires any application to be accompanied by a certification report from an external auditor. This is to verify compliance history and business operations. This report must be provided within 9 months.
Failure to meet regulatory requirements will result in the cessation of domestic operations. Full implementation of the amendments is expected in October, which is also when enhanced user protections will come into effect.
