Singapore can become a crucial region regarding cryptocurrencies. The recently introduced Payment Services Act can pave the way for broader adoption.
Similar to measures in other countries, this law helps identify legitimate exchanges and companies.
Singapore’s Payment Services Act is Beneficial
Those who do not register with the government will not be granted an operational license.
While it remains unclear if dubious crypto companies in Singapore, this move helps legitimize the real service providers.
The Singaporean Payment Services Act 2019 puts all crypto service providers under the existing AML and CTF laws.
That means that no extra regulatory measures have been announced at this time, other than obtaining the necessary license.
Many consider this form of regulation to flexible, fair, and forward-looking.
It spans the entire industry, yet also allows cryptocurrencies to thrive accordingly.
Ultimately, the Payment Services Act will help foster growth, innovation, and adoption of new payment solutions, including crypto assets.
This move is very different from recent regulatory measures introduced across the European Union
The AMLD5 ruleset has caused problems for a lot of crypto companies who do not want to collect customer data.
For now, Singaporean service providers have a full month to register with the MAS.
Once they register, there is a six-month period to officially apply for a license to operate in the country.