According to Cointelegraph: In a move that could significantly impact the country's digital assets industry, the Monetary Authority of Singapore (MAS) has announced an amendment to the Payment Services Act (PS Act). This amendment will bring additional services related to digital payment token (DPT) providers under regulatory scrutiny.
Starting from April 4, the MAS has increased the scope of the PS Act to include custodial services for DPTs, facilitation of token transfers and exchanges, and the management of cross-border money transfers. The changes apply even if the service provider never physically possesses the funds or when the funds have not been accepted or received within Singapore.
The amendments empower MAS to impose requirements concerning anti-money laundering, countering the funding of terrorism, user protection, and financial stability on DPT service providers.
A number of stages will be implemented, with transitional arrangements set in place for entities affected by the broadened rules. The central bank has encouraged entities to notify it within 30 days and apply for a license within six months from April 4 if they wish to continue operations while still under review.
Entities failing to meet these requirements are required to cease their activities after the amendments come into effect. This new batch of amendments will also cover the demands related to safeguarding customers' assets belonging to payment token service providers.
Crypto businesses like Crypto.com, Coinbase, and Ripple have acquired complete payment institution licenses to offer their services in Singapore. The trend indicates the country's increasing receptiveness towards regulated crypto operations, aimed at bolstering its FinTech scene while ensuring user protection.