On Tuesday, Singapore gave the green light to implement new rules that will require virtual asset service providers to register. If they want to conduct crypto-related business outside of the country, they will continue to face more stringent scrutiny.
The bill passed on Tuesday requires that virtual assistant service providers (VASPs) be licensed. Even though they only conduct business internationally. These organizations are now subject to anti money laundering and counter-terrorist financing (CFT) legislation.
According to the report, the companies had not previously implemented anti-money laundering (AML) and counter-terrorist financing (CFT) policies and procedures. Furthermore, the Monetary Authority of Singapore (MAS) give the authority to regulate the cryptocurrency market due to this new rule.
When ineligible individuals perform key roles, activities, and functions in the financial industry. The MAS will prohibit them from achieving those roles, activities, and procedures. The regulator will fine financial institutions subjected to cyber attacks or intrusions up to $737,050.
As the island hosts more crypto-related businesses, the move is intended to maintain the island’s reputation for financial integrity. According to current estimates, an estimated 15.8 percent of the country’s population possesses cryptocurrency assets.
Furthermore, the bill ensures that the AML/CFT requirements imposed on digital payment token service providers under the Payment Services Act are consistent with those set on digital payment token service providers (DT). A significant benefit of this legislation is that it gives the Monetary Authority of Singapore (MAS) greater control over the virtual asset sector.
New Rules In Singapore Establish Regulations To Combat Cryptocurrency
Singapore is one of the first countries to establish a regulatory framework for the cryptocurrency sector’s new rules. In January, the Malaysian Anti-Money Laundering (MAS) issued a warning to cryptocurrency exchanges. Across the country, advising them not to advertise their services to the general public.
In addition, Singapore announces a fine of more than $1 million as part of its technology risk management program (TRM). Because financial institutions could hold liable for severe cyberattacks or disruptions to critical financial services.
Even as the city-state attempts to position itself as a crypto hub, the MAS has attracted a more stringent regulatory framework.
After discovering that several Digital Payment Token (DPT) service providers were advertising their products on the internet, in print advertisements, and through automated teller machines (ATMs) in public places, the regulator stated that this action would protect investors’ interests.
Most notably, Singapore more stringent cryptocurrency regulations have not deterred crypto companies from attempting to establish themselves in the country. There are approximately 70 companies that are awaiting regulatory approval to begin offering their services in the nation.
The Malaysian Securities Authority (MAS) issued guidelines in January prohibiting the general public from engaging in cryptocurrency trading. And not long after, major lender DBS announced that it would no longer offer cryptocurrency services to retail customers.
While central Bank of Singapore issue many cryptocurrency licenses to domestic and international players, including the Digital Treasures Center (DTC), Hodlnaut, Paxos, and Sygnum. The country has not yet implemented the new regulatory framework.
Binance, a cryptocurrency exchange, is the only major company to have withdrawn from seeking regulatory approval for new rules in Singapore. Last December, Binance announced that it had withdrawn the MAS app and would cease operating as a crypto service provider in the country on February 12, 2022, effective immediately.