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Singapore brings new payments legislation to help crypto firms

By:
on Jan 28, 2020
Updated: Mar 11, 2020
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  • Singapore is moving in an attempt to regulate crypto space by bringing new legislation which comes into force today.
  • The legislation will allow operating licenses to regulatory compliant crypto businesses.
  • The move will reduce the gap between Singapore and Japan, and it comes as part of a recent move by multiple nations' regulators to secure the space and bring regulatory clarity.

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Singapore — already one of the crypto friendliest regions around the world — has recently introduced new payment legislation to help crypto businesses. Thanks to the legislation, digital currency companies will be able to expand their businesses in the country, and easily apply for, and receive an operating license for the first time.

The legislation is known as the Payment Services Act, and it will come into force today. It represents the first comprehensive regulation for crypto-based companies, whose activities can range from crypto trading to performing digital payments.

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The new law will serve more than a single purpose, as well. It will start by ensuring that crypto firms are regulatory compliant, and it will allow Singapore’s Monetary Authority to gain formal supervisory powers for the crypto sector. That includes watching over cybersecurity risks, but also control over criminal activities, such as money laundering or terrorism financing.

Investors’ interest encourages regulators to act

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The new move will change Singapore’s crypto sector enough to bring it closer to the regulatory situation of Japan, which is currently a major cryptocurrency center in Asia. So far, Japan has issued licenses for 22 digital currency exchanges in the last three years.

At the same time, the investors’ interest in digital currencies continues to grow around the world, which has led multiple regulators to bring the crypto-related venues under their scrutiny. They are deeply concerned about unlawful activities such as money laundering and other misuses of digital currencies, so they are doing everything in their power to increase the surveillance of cryptocurrency transactions.

However, Singapore’s new legislation comes with one key advantage, and that is providing regulatory clarity regarding numerous new types of crypto payment activities. That includes things such as crypto exchanges, wallets, and more.

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