On Tuesday, April 2, 2024, the Monetary Authority of Singapore (MAS) shared a press release about extending its digital asset regulations to include custody of virtual tokens and more fintech companies. These adjustments were made to position Singapore as an institutional hub for the cryptocurrency industry.
The Payment Services Act was updated to cover three significant activities under MAS's supervision: providing custodial services for digital payment tokens, facilitating cross-border fund transfers, and enabling digital payment token transfers between digital asset exchange accounts.
MAS expressed that these changes would allow it to establish standards for anti-money laundering, financial stability, and user protection. This development closely follows the launch of the COSMIC platform, aimed at combating financial crimes.
Transitional arrangements will be made for existing firms falling under the expanded scope of the Act. These entities are required to contact MAS within 30 days for a license reassessment. Failure to meet the new standards will result in the cessation of operations once the amendments take effect.
The regulatory updates are set to be implemented in phases starting from April 4, 2024.
