Singapore regulator updates cryptocurrency regulatory framework

The Monetary Authority of Singapore has published a new law regulating the circulation of cryptocurrencythe activities of related companies. New regulation complies with FATF recommendations.

This week the Monetary AuthoritySingapore (MAS) has announced a new law that covers cryptocurrency companies. The Singapore Payment Services Act (PSA) introduces the definition of digital payment tokens (DPT). All companies working with them, including Singapore-based cryptocurrency exchanges, must now comply with the Anti-Money Laundering and Terrorist Financing Rules (AML / CTF).

Cryptocurrency companies must firstregister and then apply for a license to work in Singapore. Starting January 28, firms will have a month to register with MAS and declare that they are located in Singapore and are running a DPT business. After registration, the companies have six months, during which they must apply for a license of payment organizations.

“The law on payment services providesa promising and flexible regulatory framework for the payments industry, ”said Moo Assistant Managing Director Loo Siew Yee in a statement. “The regulatory structure, based on the activities of companies and focused on risks, allows proportionally applying the rules and maintaining stability to changing business models. The law will foster growth and innovation while reducing risks and building confidence in the payment infrastructure. ”

Last June, the International GroupThe development of financial anti-money laundering measures (FATF), which includes 37 countries, including Russia, has published a final list of recommendations to prevent money laundering and terrorist financing through cryptocurrencies. It is precisely these recommendations that regulators around the world adhere to when it comes to issuing laws related to the cryptocurrency industry.

“MAS is ready to implement the FATF recommendations,” -said Malcolm Wright, head of the AML working group at Global Digital Finance. “The PSA, inter alia, takes into account the requirement to send information about the origin of the funds and the beneficiaries.”

At the end of last year, MAS introduced someamendments regarding digital assets to ensure that the law complies with FATF requirements. The amendments expanded the rules to include the transfer and exchange of DPT, the provision of custodial wallets for or on behalf of clients, as well as brokerage operations with DPT.

In addition, information appeared in November thatSingapore may allow cryptocurrency derivatives trading on regulated exchanges. In July last year, the Singapore tax agency proposed exempting from the tax on goods and services (GST) operations with cryptocurrencies, which are intended to be a medium of exchange.

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