Downtown Singapore. Image: Envato Elements
Singapore’s Monetary Authority (MAS) has amended its Payments Service Act (PSA), effective in stages from April 4, to include regulatory oversight of crypto custody and cross-border fund transfer firms.
The updated regulations mandate that digital payment token (DPT) service providers segregate customer assets in trust accounts, and maintain books and records within six months from April 4.
In addition, the PSA’s revisions expand the regulatory framework to cover custodial services, the facilitation of crypto transfers, and cross-border money transfers.
Service providers currently operating in the market are given a transitional period to meet the new licensing requirements, which include the submission of an external auditor’s attestation report within nine months.
Failure to comply will result in the termination of their operations in Singapore, with the full application of the new measures anticipated by October 4, MAS said in its press release.
Singapore’s proactive stance on crypto regulation is a direct response to the perils of unregulated cryptocurrency speculation, which has previously affected the nation.
The city-state’s initiative to refine its crypto regulations aligns with its broader ambition to become a global hub for the digital asset industry.
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