MAS announced today that businesses that deal with crypto assets are required to register with the Singaporean financial watchdog and acquire licenses within the next coming six months.
MAS and the New Regulatory Framework For Anti-Money Laundering
MAS launched a statement that they will begin the implementation of the PSA, or the Payment Services Act. This will be the latest update on their regulatory framework, regarding digital currencies and payments. The new framework for the PSA is a step towards “strengthen consumer protection and promote confidence,” according to the Singaporean financial regulator.
This particular regulatory framework has been approved by Singapore’s legislation body last year, in January 2019. However, it has taken the country over a year in order to implement the new laws to the industry. The regulatory framework will be implemented to an array of digital payments businesses, which includes new types of payment service. This means that MAS will also be focusing on all businesses that deal with crypto-assets and crypto exchanges, who need to abide by the new policies.
Regarding the new policies and regulation, the assisting managing director of MAS, Loo Siew Yee, stated that “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,” Yee continued.
What Does This Mean For Crypto Businesses?
The Monetary Authority of Singapore, MAS, has issued a regulation that all businesses in digital payments and crypto assets that are operating in the country have one month to register under the financial watchdog. After they have acquired the licence, then they will have six months to apply for a licence as a registered payment entity.
Singapore is considered one of the safest and most preferred jurisdictions in Asia, when it comes to cryptocurrency and other types of businesses in digital payments. The Singaporean government is planning on improving the industry by approving acceptable regulations, for the sake of growth. In November 2019, it was reported that the financial watchdog are planning on permitting derivatives trading when it comes to digital currencies on approved exchange, which would be an additional feature to its jurisdiction.
This means that it will be safer and more secure for traders, and even every day expenditures, to be handled with digital payments without fear of money laundering or other forms of fraudulent activity.