The Financial Authority of Singapore (MAS) is broadening its regulatory framework for crypto service suppliers by amendments to the Cost Providers Act, aiming to reinforce person safety and safeguard monetary stability.
Introduced on Tuesday, the amendments can be carried out in phases, ranging from April 4. The MAS emphasised that these modifications will embody custodial providers for digital fee tokens (DPTs), facilitation of DPT transmission, and cross-border cash transfers, even in instances the place funds aren’t obtained in Singapore.
Beneath the amended rules, the MAS can have the authority to impose necessities associated to anti-money laundering (AML), countering the financing of terrorism (CFT), person safety, and monetary stability on DPT service suppliers.
Transitional preparations can 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.
In accordance with Angela Ang, a senior coverage advisor at blockchain intelligence agency TRM Labs and former MAS regulator, this enlargement 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 advised that any choices by crypto exchanges or corporations to exit Singapore resulting from these modifications would have been made effectively upfront.
Along with regulatory amendments, the MAS launched tips outlining client safety measures that DPT service suppliers should adhere to beneath the Cost Providers Act. These measures embody segregating buyer belongings, sustaining correct books and information, and making certain 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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