The Monetary Authority of Singapore (MAS) has stated on Tuesday, January 28, that the Payment Services Act will now be implemented.
The act which was first authorized in the previous year gives the regulator supervisory power over all payment businesses in the country.
Cryptocurrency businesses operating in Singapore will have to enlist and be authorized to keep attending to customers.
Companies have a month to enroll with MAS.
As soon as they register, businesses will have six months to apply for a payment institution permit.
Singapore is popular for its widening fintech ecosystem and also with its blockchain technology playing a crucial role in it.
Although, early this year, a report noted that blockchain development was the fastest-growing technique in Singapore.
In November 2018, the Singapore government said it would provide seed grants for companies to develop a blockchain platform to engage all industry stakeholders.
Monetary Authority of Singapore is FATF-ready
According to Malcolm Wright, head of the AML Working Group at trade group Global Digital Finance, what is intriguing about the Monetary Authority of Singapore is that, in a sense, it’s FATF-ready.
This simply means preparing for a future when payment data relating to the originator and beneficiary of a crypto transaction travels with the payment guidance known as FATF’s “travel rule.”
“They were first out the door with a consultation in July explaining this is what we are recommending in terms of the enactment of the PSA, as it also connects to sending origination and beneficiary information.”
MAS also initiated a consultation before Christmas, adding some amendments to the PSA as regards digital assets.
Further aligning Singapore with the FATF, the amendments broaden rules to include the transfer of DPTs, as well as them being exchanged; the provision of custodial wallets for or on behalf of customers; and the brokering of DPT marketings.
Wright also added that the MAS has advanced a bit further than FATF in terms of some standards, however, at the same time, some aspects of it are probably not as far as FATF has planned.