Singapore’s central bank will require crypto firms to comply with AML rules
Cryptocurrency activity due to the new amendments was included in the sphere of payment services, which are subject to similar requirements
![Singapore’s central bank will require crypto firms to comply with AML rules](https://storage.getblock.net/source/1/XwWTCXaigwXm3G4wSCgqlYNK0lh_oTVD.webp)
02.04.2024 - 12:15
165
3 min
0
What’s new? The Monetary Authority of Singapore (MAS) has expanded the scope of regulated payment services to include activities related to digital payment tokens (DPT). Thus, the regulator has amended the Payment Services Act to include requirements for DPT service providers to protect users and maintain financial stability. They will start to come into effect in a phased manner over six months starting April 4.
What else is known? Under the amendments, the law will regulate activities such as the provision of cryptocurrency storage services and facilitating cryptocurrency transfer and exchange.
The amendments will allow MAS to impose anti-money laundering and countering the financing of terrorism (AML/CFT), as well as user protection and financial stability requirements on crypto service providers. They envisage mandatory licensing of crypto companies.
Industry firms will be offered transitional arrangements: they must notify MAS within 30 days and apply for a license within six months from April 4 this year. This will allow them to continue to operate on an interim basis while waiting for the application to be processed. The application must include a report on business operations and AML/CFT compliance from an independent auditor.
Non-compliant companies will have to cease operations in Singapore once the amendments come into force.
The rules for providing cryptocurrency payment services will include separate custody of own and client assets. The latter must be held in a trust account for the benefit of clients. Crypto firms will also be required to keep accounting records and maintain effective systems to protect client assets.
![Argentina has introduced a requirement for cryptocurrency companies to register with the Securities Commission](https://storage.getblock.net/source/1/BZ2rD75tl0gNMLsxVCFD-hp7eEc0jEOr.png)
Argentina has introduced a requirement for cryptocurrency companies to register with the Securities Commission
The new rule has been introduced to improve compliance with FATF recommendations
MAS earlier refused to allow spot bitcoin exchange-traded funds (ETFs) into the local market, but retail investors can trade shares of foreign funds through licensed brokers.
Useful material?
Market
Australia’s largest financial institutions have refused to process payments to digital asset trading platforms due to the risk of fraud
Jul 26, 2024
Politics
According to the politician, the value of the country’s bitcoin reserves should equal the value of gold reserves
Jul 26, 2024
Mining
The capacity of the Bitaxe device used by the network participant is only 500 Gh/s
Jul 25, 2024
Trends
Meanwhile, Trump-inspired assets have not shown significant growth
Jul 22, 2024
Market
The fee will be as much as 2,5% compared to 0,25-0,19% for competitors
Jul 18, 2024
Market
This is the third consecutive month of decline
Jul 18, 2024