March 27, 2023

Singapore begins to regulate cryptocurrency firms

Singapore begins to regulate cryptocurrency firms

Today, January 28, the legislation governing the activities of cryptocurrency companies in Singapore.

New Payment Services Law Willregulate cryptocurrency payments and the enterprise blockchain using the management system that is currently used to regulate traditional payment service providers.

Cryptocurrency companies will have to receivelicense, as well as comply with the Law on Financial Advisers, the Law on Insurance, the Law on Securities and Futures and the Law on Trust Companies. In a January 28 press release, the regulator said:

The new legislation will improve the management system of payment services, increase the security of customers, and increase public confidence in the use of digital payments.

According to Bloomberg, the Japanese cryptocurrency exchange Liquid and the English exchange Luno plan to apply for licenses in Singapore. Liquid CEO said:

We welcome the new law with open arms.

As the blockchain industry grows, more and moremore countries are starting to license cryptocurrency exchanges. Malta adopted the relevant legislation back in 2018 and in a short time received 21 requests for permission from exchangers. Recall that last year, Japan shared its experience in the field of cryptocurrency regulation with finance ministers and central bank governors from other G20 countries.