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Crypto Licensing Act in Singapore passed

Crypto Licensing Act in Singapore passed
By We Play Coins
Added on Jan 28, 2020

Crypto licensing act in Singapore passed according to the Singapore government website. Called the PAYMENT SERVICES ACT, it provides for a regulatory framework for payment systems in general. Cryptocurrency payments also fall under the same jurisdiction making its implementation and regulation easier. Cryptocurrency in Singapore may see a boost due to the clear, precise regulation mentioned in the Act.

The Monetary Authority of Singapore (MAS) today announced the commencement of the Payment Services Act (PS Act). The new PS Act will enhance the regulatory framework for payment services in Singapore, strengthen consumer protection and promote confidence in the use of e-payments.

An Act to provide for the licensing and regulation of payment service providers, the oversight of payment systems, and connected matters, to repeal the Money‑changing and Remittance Businesses Act (Chapter 187 of the 2008 Revised Edition) and the Payment Systems (Oversight) Act (Chapter 222A of the 2007 Revised Edition), and to make consequential and related amendments to certain other Acts.

The PS Act adopts an activity-based licensing framework in recognition of the different kinds of activities and new developments in payment services. It also expands MAS’ regulatory ambit to include new types of payment services, such as digital payment token services. For more information, please refer to the Second Reading Speech of the Payment Services Bill .

MAS closely engaged the industry through dialogues and public consultations in designing the PS Act. To support the transition of payment services firms to the new PS Act, MAS has initiated a payments regulatory evaluation programme to help them connect with providers of legal services.

Ms Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said, “The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry. The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”

The Money-changing and Remittance Businesses Act and the Payment Systems (Oversight) Act will be repealed with the commencement of the PS Act.

MAS thanks all respondents for their feedback to our public consultations on the PS Act-related subsidiary legislation and guidelines in 2019. The response to the feedback received can be found on the MAS website. Crypto Licensing Act in Singapore passed last year came into effect today.

Additional Information

The Payments Regulatory Evaluation Programme or PREP is an initiative launched by the MAS and the Singapore Academy of Law (SAL) to help connect the payments industry with legal service providers. Instead of relying on informal referrals, PREP provides payment firms with a streamlined process to gain access to lawyers specialising in payment services regulations to meet their compliance needs. Details are available on the SAL website.

The Association of Cryptocurrency Enterprises and Start-ups, Singapore (ACCESS), the Singapore Blockchain Association (SBA) and the Singapore FinTech Association (SFA) will be organising workshops on licensing under the Payment Services Act 2019, which will be conducted by MAS representatives. Details of the workshops are available on the associations’ respective websites.