LUCKNOW (CoinChapter.com) — The Monetary Authority of Singapore (MAS) announced amendments to the Payment Services Act to increase oversight of crypto laws. The amendments will roll out in phases starting April 4.
The amendments will bring several activities under the purview of the PS Act. This includes providing custodial services for DPTs, facilitating token transfers and exchanges, and enabling cross-border money transfers. Notably, the law will apply even in cases where the service provider does not physically possess the funds, or the money is not accepted or received in Singapore.
What Crypto Firms Must Do Before April 4th Deadline?
The amendments will take place in phases starting April 4, 2024. Affected companies have 30 days to notify MAS. They will have six months to apply for a license to continue operating while under review. Those who fail to meet the requirements will have to cease their business operations.
Entities that do not fulfill the requirements above are required to cease the activities when the amendments come into effect.
MAS wrote.
Major crypto exchanges like Crypto.com, Coinbase, and Ripple have already obtained payment institution licenses to serve Singapore’s market over the past year. Crypto.com and Coinbase received full approval in mid-2023, while Ripple got the green light in October 2023.
MAS also implemented additional rules around safeguarding customer assets held by crypto payment firms six months after April 4. These included segregating customer funds, maintaining proper records, and ensuring asset security.
How Singapore Sets the Standard for Crypto Regulation?
Singapore parliament passed these amendments back in 2021. However, the Monetary Authority of Singapore enacted the changes this week. It had postponed the planned rollout in late 2021 amid the massive upheaval and collapse of crypto exchange FTX last year, which spurred regulatory overhauls worldwide.
After years in the making, this long-awaited expansion finally provides much-needed regulatory clarity around crucial crypto services like asset custody. It brings key segments of the crypto ecosystem under the appropriate oversight.
commented Angela Ang, a senior policy advisor at TRM Labs and former MAS regulator.
Singapore’s push for expanded crypto regulations struck a balance between promoting financial innovation and safeguarding investors.
Early last year, authorities made a high-profile crackdown, arresting ten people suspected of money laundering and seizing around S$1 billion ($735 million) in assets, including cryptocurrencies. The new rules appear to prevent such illicit activities in the crypto sphere while allowing the sector to develop under appropriate oversight.
