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Singapore to Update Regulatory Base for Digital Payments

Singapore’s new financial legislation is aimed to boost crypto-related activities in the country. This legislation, the Payment Service Act which enters into force on Tuesday, is the first one of this kind in the list of comprehensive regulations, regarding the activities of firms, which use the crypto trading and digital payments of tokens such as Ethereum and Bitcoin. 

bitcoin risesPhoto: Flickr

So, Singapore-based businesses, that involve digital payments and cryptocurrency trading, are required now to first register and only then to apply for a license in order to legally operate.

In addition to the fact that cryptocurrencies fall into the regulatory framework, the PSA (Payment Services Act 2019) will transfer to the Monetary Authority of Singapore formal power to AML (anti-money laundering) official power to supervise cybersecurity risks and control money laundering and terrorist financing using cryptocurrencies. Moreover, according to the official announcement, the law will help “strengthen consumer protection and build confidence.”

By the way, Tokyo cryptocurrency exchange Liquid Group was among a number of companies who welcomed the initiative, being ready to apply already for its Singaporean license. London-based Luno announced the same plans.

Recall, the law was adopted in January 2019, but entered into force only a year later. He will regulate a wide range of companies in the area of digital payments, including “new types of payment services, such as services based on digital payment tokens.” Thus, to ensure compliance with its requirements should all cryptocurrency exchanges and other companies with similar business models.

It seems that Singapore intends to narrow the gap that has formed with Japan and Malta, which have already become the largest hubs for cryptocurrency companies. 

All crypto companies in the country have one month to register. Another six months will be allocated to apply for a payment institution license. After that, such companies will have to comply with all applicable requirements in the context of combating money laundering and terrorist financing. The Monetary Authority of Singapore pays special attention to this problem due to the possibility of cross-border anonymous transactions using cryptocurrencies.

As for the major cryptocurrency rates, they are as follows on Tuesday, at 1346 GMT:

  • Bitcoin gained 1.20 percent, to reach $9,061;

  • Bitcoin Cash eased by 0.73 percent, to $368,30;

  • Ethereum grew by 0.45 percent, to $171,88;

  • Ripple jumped by 2.55 percent, to $0,2386;

  • Litecoin rose by 1.07 percent, to $59,57.

Source: Coindesk, Coinspeaker