Singapore has a new operating license, specifically designed to accommodate cryptocurrency. It is known as the Payment Services Act.
Binance has applied for this license. According to a report by Bloomberg, the protocol was designed using conventional fiat payment rules as a guideline. The policy is expected to regulate the country’s rapidly growing crypto space. Interested persons are mandated to apply for at least one of three licenses relevant to their crypto transactions. Like the standard payment institution license, the money-changing license, and the major payment institution license. From now on, cryptocurrency businesses operating in Singapore will need to register and be licensed to continue operating in the country.
Binance is ready to comply with the MAS regulations as it lost no time in applying for the Payment Service Act license.
CEO and Co-founder of Binance, Changpeng Zhao said, “We have already applied”. Further adding that “We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.”
More on the Payment Services Act
With Singapore looking to regulate the crypto space it proposed the launch of the Payment Service Act. The policy came into full effect on January 28, 2020.
Assistant MD of MAS, Loo Siew Yee, stated that the Payment Services Act provides a flexible regulatory framework for crypto firms. Also adding that it will further promote growth and innovation. Concurrently, drastically reducing the risk associated with the crypto space. In addition to this, interested parties have only about six months to apply for a Payment Services Act license.
This is the first-ever crypto-based regulation in Singapore. MAS isn’t just tasked with establishing crypto regulations. It is also in charge of ensuring cybersecurity, avoiding thefts, money laundering, and terrorist funding.
Singapore is one of the few countries that have proven over the years to be quite receptive to cryptocurrencies.
About Binance Singapore
The Malta-based cryptocurrency exchange, Binance launched its Singapore arm in April 2019. Backed by Vertex Venture Holdings Ltd., Binance operates a fiat-to-crypto exchange in Singapore. With cryptocurrencies like BTC, ETH, BNB, and XRP listed on the platform.
Other crypto exchanges have also expressed interest in applying for the License in Singapore. Exchanges like London based crypto exchange Luno and Tokyo’s Liquid.
Altcoin Buzz previously reported a partnership between Singapore central bank and JP Morgan to make use of blockchain for cross border transactions. The country also made move to slash double taxation on cryptocurrencies.