The Financial Authority of Singapore (MAS) is broadening its regulatory framework for crypto service suppliers by way of amendments to the Fee Providers Act, aiming to boost consumer safety and safeguard monetary stability.
Introduced on Tuesday, the amendments can be applied in levels, ranging from April 4. The MAS emphasised that these adjustments will embody custodial providers for digital cost tokens (DPTs), facilitation of DPT transmission, and cross-border cash transfers, even in circumstances the place funds will not be obtained in Singapore.
Beneath 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 can 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 accordance 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 regulation professor on the Nationwide College of Singapore, remarked that these adjustments have been anticipated and unlikely to shock trade gamers. He recommended that any selections by crypto exchanges or corporations to exit Singapore because of these adjustments would have been made effectively upfront.
Along with regulatory amendments, the MAS launched tips outlining shopper safety measures that DPT service suppliers should adhere to beneath the Fee Providers Act. These measures embrace segregating buyer belongings, sustaining correct books and information, and guaranteeing the safety and integrity of buyer belongings. The rule is slated to come back into impact on October 4.
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