The Monetary Authority of Singapore (MAS) has recently announced exempting some crypto exchanges such as Binance, Ripple and Coinbase from holding a payment license in the country, according to the Block Crypto website.
The three crypto firms could offer the payment service in Singapore until 28 July 2020. However, they must comply with the Payment Services Act after the expiry of the exemption period.
The market regulator said in an official statement on its website:
“Entities that have been providing the specific payment services before the commencement of the PS Act, but have failed to notify MAS pursuant to the Exemption Regulations will be in breach of the notification requirements under the Exemption Regulations.”
Exemptions granted to other exchanges
It seems this is not the only exemption offered by the market watchdog, as other crypto platforms like BitGo Singapore and Gemini Trust were allowed to offer account issuance and domestic money transfer until 28 January 2021.
It is worth mentioning that the Payment Services Act, which regulates payment services in the country, came into force in early 2020. At that time, the regulator expressed worries about cryptocurrencies as they may be used in money laundering. Accordingly, all crypto companies were obliged to obtain a license from the MAS to operate in the country.
Binance seeks to expand in Singapore
Cryptolydian earlier reported that Binance has applied for an operating license in Singapore in an attempt to expand its user base while complying with regulations.
Local governments are still trying to decide how to regulate crypto-currency exchanges as they’re expanding into new markets. The Payment Services Act is Singapore’s first legislation of its kind, regulating crypto-trading and digital payments.
Binance is not the only international firm seeing the potential of the new regulations in Singapore. The London-based crypto exchange operators Luno and Tokyo-based Liquid have also expressed their plans to apply.