The Financial Authority of Singapore (MAS) is broadening its regulatory framework for crypto service suppliers by amendments to the Fee Providers Act, aiming to boost consumer safety and safeguard monetary stability.
Introduced on Tuesday, the amendments might be applied in levels, ranging from April 4. The MAS emphasised that these modifications will embody custodial companies for digital fee tokens (DPTs), facilitation of DPT transmission, and cross-border cash transfers, even in circumstances the place funds usually are not acquired in Singapore.
Below the amended rules, the MAS could 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 might be offered for entities affected by the expanded regulatory scope. Nonetheless, affected entities should notify the regulator inside 30 days and submit a license utility inside six months from April 4.
Based on 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 modifications have been anticipated and unlikely to shock trade gamers. He urged that any choices by crypto exchanges or companies to exit Singapore as a result of these modifications would have been made effectively prematurely.
Along with regulatory amendments, the MAS launched tips outlining client safety measures that DPT service suppliers should adhere to below the Fee Providers Act. These measures embody segregating buyer belongings, sustaining correct books and data, and guaranteeing the safety and integrity of buyer belongings. The rule of thumb is slated to come back into impact on October 4.
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