Singapore’s MAS Expands Regulatory Oversight to Include Crypto Custody and Fund Transfer Firms
Singapore has taken steps to expand its crypto regulations by including the custody of tokens and firms involved in fund transfers.
The Monetary Authority of Singapore (MAS) made the announcement on Tuesday as part of its efforts to establish the city-state as an institutional hub for the cryptocurrency industry, according to a report from BNNBloomberg .
The changes to the Payment Services Act will be implemented gradually, starting from April 4.
The MAS aims to enforce “user protection and financial stability-related requirements” through these amendments, the report said.
Singaporean officials have already signed plans to regulate custody services and other crypto-related transfer services in the country.
The move comes as a response to the risks associated with unregulated cryptocurrency speculation that affected the country in 2022.
Since then, Singapore has been reshaping its regulations to encourage the productive use of blockchain technology while curbing excessive speculation by retail investors.
Under the revised rules, service providers facilitating the transmission or exchange of tokens will be subject to regulation, even if they do not physically possess the money or coins involved.
Additionally, companies enabling cross-border transfers will now fall under the ambit of the act, regardless of whether the funds are accepted or received within Singapore.
The MAS highlighted that these measures will allow for the imposition of requirements related to anti-money laundering and countering the financing of terrorism.
Some of these regulatory amendments have been in development for several years and are intended to bring clarity to key aspects of the crypto ecosystem.
Angela Ang, a senior policy
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