Singapore’s financial services regulator is seeking to implement stricter regulations on the country’s cryptocurrency industry. The Monetary Authority of Singapore (MAS) has proposed a new law that will give it oversight over companies based in the country, even if they don’t offer services to native customers. The Monetary Authority of Singapore is overseeing the cryptocurrency industry ever since the Payment Services Act came into effect in January 2020.
Singapore enforces FATF guidelines in the country for crypto operations.
The Payment Services Act that came into effect earlier this year allowed the regulator to ensure that all service providers in the country abided by the Financial Action Task Force recommendations for virtual asset service providers (VASPs). The FATF guidelines for the cryptocurrency require that they must be regulated by the jurisdiction where it’s created. This ensures that every service provider is regulated by at least one oversight authority regardless of the scope of its global coverage. This guideline ensures that every service provider is regulated by at least one oversight authority regardless of where the company provides its services.
Crypto regulations are still in a grey area in most countries.
Regulators around the world are working on regulating the crypto industry in their countries. But currently, crypto regulations in most countries are still in a grey area. The crypto industry is still an emerging space, and regulators are playing the catch-up game.
If the proposed draft became law in Singapore, it would give the MAS authority over companies dealing in or facilitating the exchange of digital currencies. It will also oversee companies that offer advisory services to cryptocurrency holders and those offering storage and custodial services. The proposed law would apply to crypto companies, who have at least one director based in Singapore, incorporated in the country, a permanent place of business in the country, or was launched as a result of a partnership formed there.