The Financial Authority of Singapore (MAS) is broadening its regulatory framework for crypto service suppliers by way of amendments to the Cost Providers Act, aiming to boost consumer safety and safeguard monetary stability.
Introduced on Tuesday, the amendments shall be carried out in phases, ranging from April 4. The MAS emphasised that these adjustments will embody custodial companies for digital cost tokens (DPTs), facilitation of DPT transmission, and cross-border cash transfers, even in circumstances the place funds aren’t obtained in Singapore.
Below the amended rules, the MAS can have the authority to impose necessities associated to anti-money laundering (AML), countering the financing of terrorism (CFT), consumer safety, and monetary stability on DPT service suppliers.
Transitional preparations shall be offered for entities affected by the expanded regulatory scope. Nevertheless, affected entities should notify the regulator inside 30 days and submit a license software inside six months from April 4.
In line with Angela Ang, a senior coverage advisor at blockchain intelligence agency TRM Labs and former MAS regulator, this growth brings long-awaited regulatory readability to crypto custody gamers in Singapore.
Kelvin Low, a legislation professor on the Nationwide College of Singapore, remarked that these adjustments had been anticipated and unlikely to shock trade gamers. He instructed that any selections by crypto exchanges or companies to exit Singapore on account of these adjustments would have been made effectively upfront.
Along with regulatory amendments, the MAS launched pointers outlining client safety measures that DPT service suppliers should adhere to beneath the Cost Providers Act. These measures embrace segregating buyer belongings, sustaining correct books and data, and guaranteeing the safety and integrity of buyer belongings. The rule is slated to return into impact on October 4.
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