The Financial Authority of Singapore (MAS) is broadening its regulatory framework for crypto service suppliers via amendments to the Cost Companies Act, aiming to boost consumer safety and safeguard monetary stability.
Introduced on Tuesday, the amendments will probably be applied in phases, ranging from April 4. The MAS emphasised that these modifications will embody custodial companies for digital cost tokens (DPTs), facilitation of DPT transmission, and cross-border cash transfers, even in instances the place funds are usually not acquired in Singapore.
Underneath the amended rules, the MAS can have the authority to impose necessities associated to anti-money laundering (AML), countering the financing of terrorism (CFT), consumer safety, and monetary stability on DPT service suppliers.
Transitional preparations will probably be offered for entities affected by the expanded regulatory scope. Nevertheless, affected entities should notify the regulator inside 30 days and submit a license software inside six months from April 4.
Based on Angela Ang, a senior coverage advisor at blockchain intelligence agency TRM Labs and former MAS regulator, this growth brings long-awaited regulatory readability to crypto custody gamers in Singapore.
Kelvin Low, a legislation professor on the Nationwide College of Singapore, remarked that these modifications had been anticipated and unlikely to shock trade gamers. He instructed that any choices by crypto exchanges or companies to exit Singapore resulting from these modifications would have been made properly prematurely.
Along with regulatory amendments, the MAS launched tips outlining client safety measures that DPT service suppliers should adhere to beneath the Cost Companies Act. These measures embrace segregating buyer property, sustaining correct books and information, and guaranteeing the safety and integrity of buyer property. The rule of thumb is slated to come back into impact on October 4.
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