Singapore has enacted new payment legislation, marking the first time global cryptocurrency companies can apply for operational licenses to conduct business within the country.
Key Highlights of the Payment Services Act
- Comprehensive Regulation: The act introduces a unified framework for businesses dealing with digital payment tokens like Bitcoin and Ethereum.
- Global Accessibility: Companies worldwide can now apply for licenses to operate in Singapore.
- Enhanced Oversight: The Monetary Authority of Singapore (MAS) gains formal authority to monitor cybersecurity risks, money laundering, and terrorism financing.
Industry Reactions
Liquid Group Inc. (Tokyo) and Luno (London) are among the first to apply.
- Mike Kayamori, CEO of Liquid, praised the move: "This provides much-needed clarity for innovative payment activities."
- Sherry Goh of Luno noted: "The bill offers regulatory certainty and helps consumers identify trustworthy platforms."
- Binance, supported by Temasek-owned Vertex Venture, has not confirmed whether it will seek a license.
Broader Implications
- Regional Leadership: Singapore narrows the gap with Japan, Asia’s leading cryptocurrency hub (22 licensed exchanges since 2017).
- Market Confidence: Chainalysis reports that 20 of the top 50 crypto exchanges are in Asia-Pacific, handling ~40% of Bitcoin trades in H1 2024.
- Consumer Protection: MAS emphasizes the law’s focus on risk-based regulation to adapt to evolving business models.
Quote from MAS Assistant MD Loo Siew Yee:
"This activity-based, risk-focused framework ensures robust application of rules while staying agile to market changes."
FAQs
Q: Who can apply for a cryptocurrency license in Singapore?
A: Any global company meeting MAS requirements, regardless of origin.
Q: How does this law impact existing crypto businesses in Singapore?
A: They must now comply with formal regulations or risk penalties.
Q: What are the primary risks MAS will monitor?
A: Cybersecurity threats, money laundering, and terrorist financing.
👉 Discover how Singapore is shaping the future of crypto regulation
👉 Learn about Asia-Pacific’s role in global crypto markets
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