Singapore is one of the major financial hubs in the world. On Tuesday, the Monetary Authority of Singapore updated the regulatory framework connected with crypto regulations.
Payment Services Act (PSA) 2019 was updated to cover all crypto businesses and exchanges based in Singapore. The purpose of this decision was to bring so-called Digital Payments Token (DPT) services under current anti-money laundering (AML) and counterterrorist (CTF) rules.
As a result, crypto companies have to register and then apply for a license to operate in the country.
These rules are similar to the Fifth European Anti-Money Laundering Directive (AMLD5). The rules went into effect on January 10.
As a reminder, this move was long-awaited as Singapore passed the PSA back in January 2019. The new regulations will help to boost Singapore’s reputation when it comes to dealing with crypto-related companies.
Starting from today, crypto companies will have a month to register with the Monetary Authority of Singapore. They have to inform the authorities that they are based in Singapore and are operating DPT business.
The next step is to apply for a payment institution license; Companies will have six months to apply for this license.
Crypto regulations around the world
Countries around the world started to implement crypto regulations as part of the latest Financial Action Task Force recommendations. The first version of the recommendations became available in October 2018. The latest version dates back to June 2019.
Authorities in Singapore worked hard to implement these recommendations. For example, MAS launched a consultation before Christmas. Moreover, the monetary authority also added some amendments to the PSA regarding digital assets.
These amendments enabled to widen rules to include the transfer of DPT’s as well as exchanging them. Moreover, thanks to new amendments, it became possible to operate custodial wallets for or on behalf of customers, etc.
Crypto regulations should make it easier to operate in Singapore, as companies will have the opportunity to develop their businesses according to the regulations.