Benzinga - In a move to further regulate the digital asset industry, Singapore has broadened its regulatory framework to encompass the custody of tokens and additional firms involved in fund transfers.
What Happened: The Monetary Authority of Singapore (MAS) announced on Tuesday that the changes to the Payment Services Act will be implemented in stages starting on Apr. 4, Bloomberg reported. The new measures are intended to enforce user protection and financial stability-related requirements.
These changes are part of Singapore’s ongoing efforts to establish itself as a tightly regulated digital asset hub. The city-state has been reshaping its regulations since experiencing crypto-related issues in 2022, aiming to encourage productive uses of blockchain technology while curbing retail investors’ crypto speculation.
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Service providers facilitating the transmission or exchange of tokens and companies enabling cross-border transfers will now fall under the revised rulebook, even if they do not come into possession of the money or coins involved. These steps will allow the MAS to impose requirements related to anti-money laundering and countering the financing of terrorism.
Why It Matters: Singapore’s move to expand its crypto regulations comes amid a series of significant developments in the country’s digital asset industry. In 2023, Coinbase obtained a Major Payment Institution (MPI) license from the MAS, allowing it to offer regulated digital payment token (DPT) products and services in Singapore. This was seen as a game-changer for the crypto industry in Singapore.
Earlier in 2023, Singaporean law enforcement detained 10 individuals on allegations of money laundering, capturing assets valued at around S$1 billion ($735 million), which included cryptocurrencies. The move to expand crypto regulations could be seen as a response to such incidents, as the country seeks to foster innovation while protecting investors.
Meanwhile, Bitdeer Technologies, a Singapore-based crypto mining company, has been making headlines due to its strategic partnership with Nvidia. This partnership was identified as a potential catalyst for the company’s stock price to soar.
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