- The Monetary Authority of Singapore (MAS) has altered the regulations in the act and each service provider will be expected to follow the rules and regulations set by the MAS
- The amendments proposed for service providers in the bill will help to reduce the risk of the DPT service providers who are exploited by criminals to launder illicit proceeds or hide illicit assets
Singapore Parliament has passed an amendment bill to tighten the digital payment service providers dealing in cryptocurrency
The Parliament of Singapore has passed a bill to keep a vigil on the digital payment service providers who are dealing in cryptocurrency. The digital payment tokens (DPT) are also known as cryptocurrency. The service providers who deal in DPT will now have to get the license from the regulatory body after the changes made to the payment services act passed on January 4, 2021.
The Monetary Authority of Singapore (MAS) has altered the regulations in the act and each service provider will be expected to follow the rules and regulations set by the MAS. Addressing the parliament, Minister for Transport Ong Ye Kung has passed a statement during the second reading of the payment services amendment bill in parliament.
The minister believes that the amendments proposed for service providers in the bill will help to reduce the risk of the DPT service providers who are exploited by criminals to launder illicit proceeds or hide illicit assets. MAS regulates service providers who deal in the exchange of cryptocurrencies .
However, in the new law that has been amended MAS can even put a hold on those service providers too who may not have the money or cryptocurrency involved. Talking on the behalf of Therman Shammugaratnam, minister in charge of MAS, Ong believed that the time and speed with which the dealings are done in cryptocurrency and that cross border activities are high in here have more chances of money laundering and terrorism financing risks.
10 members of the parliament from both sides of the house participated in the debate related to the amendment of the bill. The bill was passed on Monday January 4, 2021. The bill has also talked about the cross border transfers and there is a provision in the bill which will facilitate the same. The money transfer services include facilitating transfers of money between persons in different countries, where money is neither accepted nor received by the service provider in Singapore.
This way service providers who transfer cross border money will come in the eyes of the regulators even if the money is not going through Singapore. The Central bank will also get the powers to hold on to the service providers to ensure security of the funds of the people and maintain financial stability.
Currently the users are at higher risk due to the low usage of cryptocurrencies in Singapore but this could eventually change as industry players are bringing many options for the customers. Ong said that there has been a massive development in the new form of DPT whose values are pegged to stable assets to gain the support of the customers. Hence, it is important for MAS to respond to these changes as quickly as possible to address new risks and keep customers protected in a timely manner.
If necessary MAS can also put user protection measures on service providers as per the amendment bill.
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