Singapore Introduces Payment Services Act To Regulate Crypto Exchanges

Singapore has introduced a new Payment Services Act that gives global cryptocurrency exchanges a chance to expand their operations. However, they must apply for operating licenses to provide their services in the country.

Singapore moves to legalize crypto exchanges with Payment Services Act

Singapore is aiming to boost cryptocurrency exchanges by offering them a chance to apply for operating licenses. The move, called the Payment Services Act, has come into effect on Tuesday (January 28, 2020). The new law will allow global crypto platforms the chance to expand their operations in the country.

The new law will also serve as detailed regulation for crypto firms — for activities ranging from digital payments to the trading of coins like Bitcoin and Ethereum. It will also help provide a concrete and detailed framework on things like eWallets and exchanges of cryptocurrencies.

Crypto firms can now apply for operating licenses from MAS

According to the bill, crypto exchange platforms in Singapore can now apply for operating licenses from the Monetary Authority of Singapore (MAS). The new laws also grant the regulatory agency, monitoring and supervisory powers over businesses in the country’s crypto space.

The new Payment Services Act contains two regulatory frameworks — payment systems designation and licensing requirements. Together, both parallel aspects of the new laws should help the MAS in overseeing crypto and other payment systems under a unified regulatory paradigm.

Speaking to Bloomberg, Sherry Goh, general manager for Luno Singapore hailed the development, declaring:

[The new law] provides regulatory certainty to industry players but, more importantly, it provides consumers with a clear sense of the players they can trust.

As per Bloomberg, Luno and Liquid Inc. plan to apply for operating licenses under the new regulatory framework. Singapore joins Malaysia in becoming the latest country in Southeast Asia to create a legal basis for crypto exchanges.

The move towards legalizing aspects of the crypto platforms comes as cryptocurrencies continue to gain popularity in Southeast Asia. Earlier in January, Malaysian regulators banned crypto Initial Coin Offerings (ICOs) while issuing regulations for initial exchange offerings (IEOs).