The Monetary Authority of Singapore (MAS) is tightening its grip on the crypto sector by adding new regulations to the Payment Services Act, which are set to take effect in stages starting April 4. The updates will broaden the scope of payment services that are regulated to cover the safekeeping of digital payment tokens, help with their transfer, and aid in international money transfers.
The MAS stated that the amendments would empower the regulator to impose requirements related to anti-money laundering, countering terrorism financing, user protection, and financial stability on DPT service providers.
The regulator will provide transitional arrangements, requiring entities conducting activities under the expanded scope to inform the MAS within 30 days and file a license application within six months from April 4.
Angela Ang, a former MAS regulator and senior policy advisor at TRM Labs, praised the move. The changes clarified the rules for crypto custody services in Singapore, making things clearer for them.
The Monetary Authority of Singapore also prescribed rules for digital payment token service providers to protect consumers and their involvement in the digital currency market. This framework necessitates segregating customers’ assets, recording the assets’ activities correctly, and safeguarding the assets. From October 4th, the guidelines will be in operation.
The amendments to the Payment Services Act reflect how serious Singapore is about setting up a viable policy regime for the cryptocurrency community that takes care of customers, is driven by service quality, and considers the potential threats to the currency and illicit operations.
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