Singapore expands digital payment regulatory scope! 4/4 of encryption companies that do not meet the requirements need to stop business

The Monetary Authority of Singapore (MAS) announced on April 2 that it will amend the Payment Services Act and its subsidiary legislation to expand the regulatory scope of payment services.

Singapore increases supervision of "digital payment tokens"

The amendment is expected to be implemented in phases from April 4, targeting "digital payment token (DPT) operators The scope of supervision includes:

• Provides DPT custody services.

• Assists in cross-border remittances, even if the funds are not received or paid in Singapore.

• Assist DPT transfers and exchanges, even if the operator itself does not hold the relevant funds or the DPT.

• Propose anti-money laundering to DPT service providers , anti-terrorism financing, user protection and financial stability and other requirements.

MAS pointed out that transition arrangements will be provided for entities within the scope of supervision, and such entities need to comply within 30 days after April 4 Notify the Monetary Authority and submit a license application within each month, so that you can continue to operate your business during the license review period.

In addition, operators need to submit an anti-money laundering certificate issued by an external audit within 9 months after application. , Anti-terrorism financing compliance certification report. Non-compliant operators need to cease relevant activities immediately after the amendment takes effect.

Former MAS consultant: Improve regulatory clarity

Recent few Since last month, many crypto exchanges have obtained licenses in Singapore, or obtained in-principle approval. It is unclear what impact Singapore’s expanded regulatory scope will have:

• 10/2: Coinbase obtained Singapore’s approval The major payment institution license will regard Singapore as a priority market

• 11/16: Paxos received original approval from the Monetary Authority of Singapore and plans to launch a new US dollar stable currency

• 11/17: XREX received in-principle approval for a Singapore payment institution license and will expand the types of currencies it supports

• 3/13: OKX obtained a large payment institution license from the Monetary Authority of Singapore (MPI)’s in-principle approval

However, according to The Block, Angela Ang, former MAS Vice President of Payment Supervision and current TRM Labs Senior Policy Advisor, is optimistic about this: This amendment will be effective from 2021 It has been ongoing since and will bring much-anticipated regulatory clarity to crypto custodians in Singapore.

Legal counsel Kelvin Low also said that these regulatory updates are expected and if this will cause crypto companies to be affected , in fact, I would have quit Singapore long ago.

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