The Monetary Authority of Singapore (MAS) recently announced amendments to the Payment Services Act in order to extend the range of regulated services for digital payment token (DPT) service providers.
The amendment, set to begin on April 4, will bring several activities within the scope of the PS Act. These activities include providing custodial services for DPTs, facilitating token transfers and exchanges, as well as enabling cross-border money transfers. The law will cover instances where the service provider does not have possession of the funds or where the money is not received in Singapore.
MAS stated that the updated regulations would empower them to impose requirements related to anti-money laundering, countering the financing of terrorism, user protection, and financial stability on DPT service providers.
To ensure compliance, entities affected by the expanded scope are urged to inform MAS within 30 days and apply for a license within six months. Non-compliant companies will be required to cease their activities once the amendments take effect.
Additionally, the amendments will focus on safeguarding customer assets of payment token service providers. This includes measures such as segregating customer assets, placing them in trust accounts, maintaining books and records, and enhancing the security of customer assets.
In the market, many crypto companies are obtaining licenses to operate in Singapore. Organizations like Crypto.com, Coinbase, and Ripple have already secured complete payment institution licenses in the country. After meeting the requirements, Crypto.com obtained its Major Payment Institution (MPI) license in June 2023. Ripple was granted formal approval on Oct. 4, while Coinbase acquired the full MPI license on Oct. 2, 2023.
