Cryptocurrency usage in Singapore is on the rise. Hence, the need for better crypto regulations to guide crypto activities in the country.
In line with this, the Monetary Authority of Singapore (MAS) has proposed several new crypto regulations. According to reports, these regulations will guide all firms offering crypto trading and custody services in the country.
Crypto Firms Expected To Obtain a License
A major point in the newly issued guidelines is that crypto-based firms are expected to obtain a license to carry out crypto transactions in the country. The license will be issued due to the new changes to the country’s Payment Services Act. Introduced this January, this rule is directed at reducing or completely eliminating the risks of crypto-based crime, especially money laundering.
The country’s Minister for Transport, Ong Ye Kung, also corroborated this belief. He further added that the license will drastically reduce the “risk of DPT service providers being exploited by criminals to launder illicit proceeds or hide illicit assets.” Ong also pointed out issues relating to the use of crypto in cross-border transactions. According to him, there’s a high risk of crypto being used to fund terrorist organizations. Paying closer attention to crypto transactions via adequate regulations may help thwart such issues.
Prior to the new regulations, the Monetary Authority of Singapore (MAS) was already in charge of monitoring crypto transactions in the country. The new regulations, however, provide them with the authority to oversee all crypto activities in the region.
Details of the Crypto Bill
According to Ong, the new bill throws more light on the meaning of cross-border transactions with respect to cryptocurrencies. This time around, it would include funds transferred between individuals in different geographical regions. Such transactions will still be regulated by the MAS despite the funds not flowing through Singapore.
Notably, crypto-based organizations will be required to comply with KYC protocols. Crypto exchanges might also need to purchase insurance as a way to safeguard users’ funds.
These regulations are a welcome development to the fast-growing crypto space in Singapore. With more features being brought to life in the crypto space, MAS will help ensure that possible risks are averted.
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