Singapore's new rules are just as long awaited as the Fifth European Anti-Money Laundering Directive (AMLD5), which entered into force on 10 January. The Payment Services Act was approved in January 2019, and entered into legal force on January 27, 2020. According to the regulator, the framework will strengthen consumer protection and confidence.
Therefore, cryptocurrency companies in Singapore must first register, then apply for a license in order to be eligible to provide cryptocurrency payment services. As of January 28, the company has one month to register in the Monetary Authority of Singapore (MAS). To do this, a company must inform that it acts in Singapore and provides Digital Payment Token (DPT) services. After registration, the company will have six months, during which it must apply for a payment institution license.
MAS Assistant Managing Director Loo SIEW YEE said in a statement:
“The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry. The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”
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