Singapore’s Central Bank Eyes Proposes Law With Tighter Crypto Regulations

Nov 20, 2018 at 20:23

The Monetary Authority of Singapore (MAS) has proposed a bill that will stretch the list of cryptocurrencies under its purview.

MAS board member and education minister Ong Ye Kung has submitted the Payment Services Bill (PSB) to parliament, local english daily The Straits Times reported.

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The new bill, which has passed through two public consultations since August 2016, has reportedly been drafted to better safeguard consumer funds, counter terrorism financing, and bolster cybersecurity.

When enforced at the end of 2019, the bill will amend two laws in place, namely the Payment Systems Act and the Money-Changing and Remittance Businesses Act.

“The MAS has clarified that PSB comprises two parallel frameworks, the first being a ‘designation regime’ that enables the central bank to name and thereby bring payment systems it considers ‘crucial to financial stability’ under its oversight. The second entails a mandatory licensing regime for payment service providers, who will be required to apply for one of three licenses based on the nature and scope of their activities,” read the report.

Activities to be covered under the new regime include accounts and electronic money issuances, local and international money transfer, and the acquisition of merchants who will use their platform, among others.

As these activities involve varying degrees of risks, the MAS will handle them according to their risks.

The central bank has given digital token payment service providers six months and non-crypto payment providers 12 months to comply with the new law.