Legislation regarding the operations of cryptocurrency firms in Singapore comes into effect from Jan. 28.
The new Payment Services Act will regulate cryptocurrency payments and trading enterprises under some aspects of the regulatory regime that currently governs traditional payment services and require them to hold a license.
Crypto payment services must also comply with:
- The Financial Advisers Act
- Insurance Act
- Securities and Futures Act
- Trust Companies Act
The new rules place crypto services under the oversight of the Monetary Authority of Singapore.
The regulator announced in a press release that the new framework is expected to “enhance the regulatory framework for payment services in Singapore, strengthen consumer protection and promote confidence in the use of e-payments.”
The regulator’s Assistant Managing Director Loo Siew Yee said:
“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.”
The new regulations require cryptocurrency-related firms to apply for operating licenses such as a money-changing license, a standard payment institution license, and a major payment institution license.