The Monetary Authority of Singapore (MAS) has made significant changes to its Payments Service Act (PSA) in order to strengthen its oversight and improve user protection in the cryptocurrency industry, as per an announcement on April 2.

These amendments are in line with Singapore’s efforts to establish itself as a crypto-friendly hub, supported by regulatory frameworks that encourage innovation while prioritizing the safety of investors.

The adjustments have made Singapore an attractive destination for many crypto companies, such as Coinbase and Ripple, seeking to expand into the Asian market.

Under the updated regulations, MAS has included three new digital payment token (DPT) services in the PSA, including custody services, facilitating the transfer of crypto between accounts and exchanges, and cross-border money transfers.

Providers offering these services are required to set up trust accounts for customer funds and implement strong security measures to protect these assets. They must also comply with anti-money laundering and counter-terrorism financing rules, as well as meet user protection and financial stability standards.

The revised regulations will go into effect on April 4, with existing service providers granted a grace period under a transitional arrangement. These providers must inform MAS within 30 days and apply for a license within six months to continue operating in Singapore. Additionally, they must submit an attestation report from an external auditor within nine months confirming compliance history and business operations.

Failure to meet these requirements within the specified timeframe will result in the cessation of operations in Singapore. The amended regulations are expected to be fully implemented by October 4, when the enhanced user protection measures will be enforced.

This news comes as Singapore solidifies its position as a leading player in the global crypto industry.

Fabio

Full Stack Developer

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I’m passionate about web development and design in all its forms, helping small businesses build and improve their online presence. I spend a lot of time learning new techniques and actively helping other people learn web development through a variety of help groups and writing tutorials for my blog about advancements in web design and development.

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