The Monetary Authority of Singapore (MAS) has made an announcement regarding its plans to expand the regulated services related to digital payment token (DPT) service providers under the country’s Payment Services Act (PS Act). The amendments to the PS Act will encompass various activities, including the provision of custodial services for DPTs, facilitating token transfers and exchanges, as well as enabling cross-border money transfers.
MAS has clarified that the law will apply even if the service provider does not physically possess the funds or if the money is not accepted or received in Singapore.
In addition, MAS has stated that the updates will introduce additional requirements for DPT service providers. The implementation of the amendments will be carried out in stages, commencing on April 4. Transitional arrangements will be provided to entities affected by the expanded scope, and these entities are urged to notify MAS within 30 days and apply for a license within six months if they wish to continue their operations during the review process.
Noncompliant companies will face closure, as entities that fail to meet the requirements must cease their activities once the amendments come into effect.
Furthermore, MAS will introduce amendments aimed at safeguarding customer assets of payment token service providers. These amendments will involve the segregation of customer assets and their placement in a trust account, the maintenance of books and records, and the establishment of security measures to protect customer assets. The provisions for protecting user assets will be implemented six months after April 4.
Several crypto companies have obtained licenses to offer their services in Singapore, including Crypto.com, Coinbase, and Ripple. Crypto.com obtained its Major Payment Institution (MPI) license in June 2023, Ripple received formal approval on October 4, and Coinbase acquired the full MPI license on October 2, 2023.
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