Singapore Payment Services Act Now in Effect For Crypto Firms

Cryptocurrency firms in Singapore must now operate in compliance with the Payment Services Act which came into effect on Jan. 28.  

The new legislation requires cryptocurrency providers and exchanges to be licensed under some of the same regulatory elements as traditional financial service providers. In addition, crypto firms must also comply with the Financial Advisers Act, Insurance Act, Securities and Futures Act and the Trust Companies Act.

MAS New Rules

According to a press release published on Jan. 28, the new rules place cryptocurrency firms under the oversight of the Monetary Authority of Singapore (MAS).

Loo Siew Yee, Assistant Managing Director, MAS said in the release, “The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry. The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”

Standard Operating Licenses

Essentially, the new regulations require, cryptocurrency and digital asset providers to apply for standard operating licenses that traditional financial firms would also be required to obtain, these include—standard payments institution license; money-changing license and a major payment institution license.

The press release stated that applying these standards to the emerging digital asset services will, “enhance the regulatory framework for payment services in Singapore, strengthen consumer protection and promote confidence in the use of e-payments.”

Image via Shutterstock