The Singapore government has passed legislation that will give the Monetary Authority of Singapore, or MAS, additional power to respond to crypto companies doing business outside the country.
Singapore Parliament records show that the government passed the Financial Services and Markets Bill on Tuesday after a second reading on April 4. According to the MAS, the legislation demand Virtual asset service providers doing business outside of Singapore must be licensed and subject to anti-money laundering and anti-terrorist financing, or AML and CFT, requirements, respectively.
โDigital token service providers could easily structure their businesses to evade regulation in any jurisdiction as they mostly operate online,โ said MAS board member Alvin Tan, speaking on behalf of Chief Minister Tharman Shanmugaratnam. โWe could be exposed to reputational risks posed by DT service providers created in Singapore, and providing services related to virtual assets such as Bitcoin outside of Singapore.โ
The financial watchdog will have the power to conduct inspections of digital token service providers related to AML/CFT compliance and assist financial regulators and enforcement agencies in other countries. Cointelegraph reported in December that the License applications denied by the MAS of more than 100 crypto companies looking to operate in Singapore.
โDT service providers created in Singapore without providing any DT services in Singapore are currently not regulated for AML/CFT,โ Tan said. โThese entities may claim to be based here to take advantage of Singapore's global reputation. This creates reputational risks for Singapore."
The bill will also expand the MAS's authority to issue prohibition orders against financial industry figures "who have shown themselves unable to perform key roles, activities and functions." In addition, financial institutions could be fined SGD 1 million, approximately $736,589, "for a serious cyber attack or essential financial service interruption."
Singapore's monetary authority issued guidelines in January that effectively banned crypto companies from advertising in areas including public transportation, public websites, social media platforms, and print and broadcast media. At the time of publication, crypto companies licensed in Singapore are restricted from promoting or advertising services on their own websites or mobile apps.
Related:Paxos Gets Singapore Financial Regulator Approval
Companies that handle digital assets, including Bitstamp Limited, Coinbase Singapore and Gemini Trust, have been granted exemptions for a license in Singapore. Binance announced in December that it had withdrew his request to the MASand planned to "reduce" services in the country by February.
Post navigation
