Singapore announced that Payment Services Act has come into force today, which requires all Singapore-based Crypto companies and exchanges to register first and then apply for a license to start its operations within the country.
Singapore’s Payment Services Act 2019 (PSA) offers Digital Payment Token (DPT) services – essentially covering all crypto firms and exchanges – under the existing anti-money laundry (AML) and counter-terrorist financing (CTF) laws.
Loo Siew Yee, MAS Assistant Managing Director 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.”
Compared to the Fifth European Anti-Money Laundering Directive (AMLD5), which came into force on 10 January, the new rules for Singapore are long awaited: the PSA was passed back in January 2019. Singapore has further cemented a forward-thinking authority in governing the cryptocurrency industry in the months that have come to pass.
As of today, businesses will have one month to register with Monetary Authority of Singapore (MAS), confirming that they are based in Singapore and run a DPT company. When businesses have registered, there is a six-month grace period during which they are expected to apply for a license from a payment institution.
Malcolm Wright, head of the AML Working Group at trade group Global Digital Finance said:
“The interesting thing about the Monetary Authority of Singapore is that, in a sense, it’s FATF-ready. They were first out the door with a consultation back in July saying this is what we are proposing in terms of the implementation of the PSA, as it relates to sending origination and beneficiary information.”