Firms offering crypto custody services and covering other aspects of payments would see new rules according to the country’s amendments of the Payment Services Act (PS Act).
In 2021, the parliament of Singapore passed amendments to the Payment Services Act (PS Act). Three years later, the Monetary Authority of Singapore (MAS) has decided to implement it. The new rules will also apply to companies offering crypto custody services. With the changes, crypto regulation in Singapore could see a new phase.
According to the amendments, crypto service providers in Singapore providing custodial and other services would have to obtain licenses. Other aspects include cross-border transfers and the transfer of crypto between exchanges and wallets. On a broader perspective, lawmakers directed the amendments for payment firms, but crypto will come under its ambit.
In its official press release, the MAS has called crypto service providers digital payment token (DPT) service providers. These firms would have to apply for the licenses within six months from April 4. Meanwhile, these amendments will also come into effect six months henceforth.
The MAS said, “The amendments will empower MAS to impose requirements relating to anti-money laundering and countering the financing of terrorism, user protection and financial stability on DPT service providers.”
Further, the rules will also enforce the protection of customers’ assets in these firms. For instance, the assets will be placed in a trust account. Secondly, the firms will have to maintain appropriate books and records with effective controls and systems.
A couple of months back, the Singapore parliament saw a new regulatory bill. The bill had mandated regulating crypto financial products. On the other hand, the MAS has headed multiple initiatives for the crypto sector, including digital money trials. It has also drafted a regulatory framework for stablecoins.
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