The Monetary Authority of Singapore (MAS) has announced its plans to make amendments to the Payment Services Act (PS Act) in order to expand the regulated services provided by digital payment token (DPT) service providers.
On April 2, the central bank of Singapore revealed that it would bring several activities under the purview of the PS Act. These activities include offering custodial services for DPTs, facilitating token transfers and exchanges, as well as facilitating cross-border money transfers.
The regulator has also clarified that the law applies even in cases where the service provider does not physically possess the funds or where the money is not accepted or received in Singapore.
MAS has stated that the updated regulations will allow for additional requirements to be imposed on DPT service providers. In the words of MAS:
“The amendments will be implemented in multiple stages, commencing on April 4. Transitional arrangements will be provided for entities affected by the expanded scope.”
The regulator has advised these entities to inform the central bank within 30 days and to apply for a license within six months after April 4 if they wish to continue their operations while under review.
Furthermore, MAS has announced that noncompliant companies will be forced to cease their activities. It stated, “Entities that fail to meet the aforementioned requirements will be required to discontinue their activities when the amendments come into effect.”
In addition, the regulator intends to introduce amendments that focus on safeguarding customer assets held by payment token service providers. These amendments will cover the segregation of customer assets and their placement in a trust account, the maintenance of books and records, as well as ensuring the security of customer assets.
The amendments aimed at protecting user assets will be implemented six months after April 4.
In related news, many cryptocurrency companies are obtaining licenses as they seek to offer their services in the Singaporean market. Crypto.com, Coinbase, and Ripple are among the organizations that have acquired full payment institution licenses in the country.
Crypto.com, for instance, obtained its Major Payment Institution (MPI) license in June 2023 after fulfilling the necessary requirements. Ripple also received formal approval on October 4, while Coinbase acquired the full MPI license on October 2, 2023.
Magazine:
KuCoin’s desperate $10M airdrop, 1 tweet raises $37M for memecoin: Asia Express