Singapore denies licenses to cryptocurrency companies

The country imposes such strict conditions to combat money laundering

24.12.2021 - 12:00

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What’s new? Since Singapore began regulating the crypto sector, around 170 cryptocurrency companies have applied for a license. More than 100 of them have been rejected or withdrawn their applications, the MAS representative told Nikkei Asia in an interview. The companies that started their operations before the licensing regime was introduced have been granted exceptions until their applications are processed.

The Nikkei Asia material

Why has Singapore tightened its licensing policy? A representative for the Monetary Authority of Singapore (MAS) said such measures are being taken to prevent illegal activities such as money laundering or terrorist financing. He clarified:

“Digital asset service providers in Singapore have to comply with requirements to mitigate such risks, including the need to carry out proper customer due diligence, conduct regular account reviews, and monitor and report suspicious transactions.”

How does Singapore plan to become the first crypto country? The country has been actively developing digital payments in recent years and also plans to build the world's first bitcoin city, Bitcoin City. Perhaps the licensing complication is aimed at improving quality rather than increasing the number of the cryptocurrency organizations. Earlier, it was reported that even Binance failed to obtain a license in Singapore.

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