HomeCryptocurrencySingapore Expands Crypto Regulation, Introduces Stricter User Protection Requirements

Singapore Expands Crypto Regulation, Introduces Stricter User Protection Requirements

The Financial Authority of Singapore (MAS) is broadening its regulatory framework for crypto service suppliers by amendments to the Fee Providers Act, aiming to boost person safety and safeguard monetary stability.

Introduced on Tuesday, the amendments will likely be applied in phases, ranging from April 4. The MAS emphasised that these modifications will embody custodial providers for digital cost tokens (DPTs), facilitation of DPT transmission, and cross-border cash transfers, even in circumstances the place funds will not be acquired in Singapore.

Underneath the amended rules, the MAS may 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 will likely be supplied for entities affected by the expanded regulatory scope. Nevertheless, affected entities should notify the regulator inside 30 days and submit a license software 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 business gamers. He advised that any selections by crypto exchanges or corporations to exit Singapore resulting from these modifications would have been made properly upfront.

Along with regulatory amendments, the MAS launched tips outlining client safety measures that DPT service suppliers should adhere to beneath the Fee Providers Act. These measures embrace segregating buyer property, sustaining correct books and information, and guaranteeing the safety and integrity of buyer property. The rule is slated to come back into impact on October 4.

Featured Picture: Freepik

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