The Monetary Authority of Singapore has expanded the ambit of cryptocurrency-related activities it regulates. An announcement on Tuesday said custodial services, cross-border money transfers, and transmission of cryptocurrencies between accounts and exchanges would be covered under the Payment Services Act, or PS Act, passed in January 2021. The new provisions come into force
The financial sector will now be able to set requirements for digital payment token (DPT) service providers in three key areas: preventing money laundering and terrorist financing, protecting users, and maintaining financial stability.
“MAS expands Payment Services Act, tightening crypto regulations in Singapore from April 4. New laws aim to enhance anti-money laundering, user protection, and financial stability,” said Sharpe Signals, a crypto news handle on X, in a post.
The Act expands the scope of digital payment token (DPT) services “to include the following three activities: One, facilitating the transmission of DPTs from one account to another; second, custodial services for DPTs; and third, facilitating the exchange of DPTs where the service provider does not come into possession of the money or DPTs involved.”
The law makes it mandatory for any business based in Singapore offering these services to be licensed by the MAS. The provision aims to protect DPT service providers from criminals who can use their platforms to hide or launder illicit funds.
To ease the transition for these existing entities, MAS is offering temporary authorization while they apply for a full license.
