Bittime - The Monetary Authority of Singapore (MAS) has officially expanded the scope of regulations regarding crypto activities. This expansion includes oversight of crypto asset custodian services, cross-border money transfers, and crypto transmission.
This regulatory change will come into effect on April 4 2024. Crypto service providers are required to meet user protection and financial stability requirements, as well as apply for a business license. Entities that do not comply will be subject to sanctions in the form of termination of business activities.
Protecting Users and Financial Stability
This expanded regulatory scope not only targets custodial services, but also cross-border money transfers involving crypto assets, even if the money is not received or sent in Singapore. Apart from that, this new regulation also regulates the crypto transmission mechanism between accounts and crypto exchanges.
This regulatory change is the result of a revision of the Payment Services Act (PS Act) which was passed in 2021. This regulation aims to provide a more comprehensive framework in terms of supervision of payment service providers, including crypto service providers.
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Originally Scheduled to Take Effect in Q4 2021
Initially, the revised PS Act was scheduled to take effect in the fourth quarter of 2021. However, it was only officially implemented last Tuesday. This delay was attributed to the volatile conditions of the global crypto market, especially after FTX's bankruptcy.
Angela Ang, senior policy advisor for blockchain intelligence firm TRM Labs and a former MAS regulator, said this was a long-awaited regulatory expansion. This regulation provides clarity in terms of supervision of important sectors in the crypto ecosystem, such as custodial services.
Also Read: The Role of Digital Asset Custodians
New Requirements and Sanctions for Crypto Business Actors
This PS Act amendment requires digital payment token (DPT) or crypto service providers to implement various requirements related to user protection and financial stability. These requirements include:
- Segregation of customer assets and placement in trust accounts for the benefit of the customer.
- Maintaining good books and records.
- Implementation of effective systems and controls.
Also Read: What is Non-custodial? The following is an explanation and examples
Business License Application
Crypto service providers who have previously operated under the PS Act are required to begin the transition process within 30 days and apply for a business license within six months starting April 4, 2024. This permit is required to allow them to continue activities on a temporary basis during the permit application process taking place.
The business license application must be accompanied by a compliance report verified by an external auditor within nine months. This report must demonstrate compliance with anti-money laundering (AML) and prevention of the financing of terrorism (CFT) requirements. Entities that do not comply with these requirements will be subject to sanctions in the form of termination of all business activities, said MAS.
Also Read How to Buy Crypto:
The Impact of New Regulations on Singapore's Crypto Ecosystem
This new MAS policy marks a firm step to strengthen crypto regulations in Singapore. It is hoped that this regulation can increase investor confidence in crypto assets and encourage the growth of a healthier and more secure crypto ecosystem in Singapore.
Crypto business actors in Singapore are advised to immediately study and comply with these latest regulatory changes. They need to prepare themselves to make the transition and meet the licensing requirements set by MAS.
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How to Buy Crypto with Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Cryptocurrency regulations in Singapore and Thailand
BitGo Obtains Major Payment Institution License in Singapore
Cryptocurrency Bill: Indonesia's Future Digital Financial Challenges
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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