Singapore’s new cryptocurrency regulations will come into effect in phases from April 4.

The Monetary Authority of Singapore (MAS) has significantly amended its Payment Services Act (PSA) to enhance its jurisdiction and enhance user protection in the cryptocurrency industry, according to an April 2 statement.

These amendments are in line with Singapore’s commitment to cementing its position as a crypto-friendly hub, supported by a regulatory framework that simultaneously fosters innovation and prioritizes investor protection.

Notably, these moves have made the country a preferred destination for several cryptocurrency companies, including Coinbase, Ripple, and others looking to expand into the Asian market.

PSA regulation

MAS has incorporated three new digital payment token (DPT) services into the PSA, including custody services, facilitating cryptocurrency transfers between accounts and exchanges, and cross-border currency remittances.

Of particular note is that in the latter two categories, service providers are not required to own or accept digital assets in Singapore.

Under the new regulations, DPT service providers must establish trust accounts for client funds and implement strong security protocols to protect those assets.

In addition, all entities providing these services must comply with strict anti-money laundering and counter-terrorist financing legal provisions. They must also meet user property protection and financial stability requirements.

Implementation timetable

The revised regulations will come into effect on April 4.

However, the regulator has extended a grace period under a "transitional arrangement" for existing service providers, which must notify MAS within 30 days and apply for a license within six months to continue operating in the country.

In addition, MAS stipulates that any application must be accompanied by a certification report from an external auditor to verify the compliance history and business operations. The report must be provided within nine months from April 4.

Failure to meet the specified requirements within the specified time will result in the suspension of operations within the country. The revisions are expected to be fully effective on October 4, when enhanced user protection measures will come into effect. #新加坡 #跨境转账