The Financial Authority of Singapore (MAS) is broadening its regulatory framework for crypto service suppliers by way of amendments to the Fee Companies Act, aiming to boost person safety and safeguard monetary stability.
Introduced on Tuesday, the amendments shall be applied in phases, ranging from April 4. The MAS emphasised that these modifications will embody custodial companies for digital cost tokens (DPTs), facilitation of DPT transmission, and cross-border cash transfers, even in circumstances the place funds usually are not obtained in Singapore.
Beneath the amended laws, the MAS could 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 shall be supplied for entities affected by the expanded regulatory scope. Nonetheless, 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 had been anticipated and unlikely to shock business gamers. He steered that any selections by crypto exchanges or corporations to exit Singapore on account of these modifications would have been made effectively prematurely.
Along with regulatory amendments, the MAS launched tips outlining shopper safety measures that DPT service suppliers should adhere to below the Fee Companies Act. These measures embrace segregating buyer belongings, sustaining correct books and data, and guaranteeing the safety and integrity of buyer belongings. The rule is slated to come back into impact on October 4.
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