Singapore widens crypto regulation, introduces enhanced user protection requirements

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Quick Take

The Monetary Authority of Singapore is expanding its regulatory scope for crypto service providers by introducing amendments to the Payment Services Act.
The amendments will take effect from April 4 in stages.
The MAS also released guidelines on consumer protection requirements for crypto firms.

Singapore is introducing regulations that appear to be more stringent for companies engaging in cryptocurrency services or digital payment token (DPT) services.

The Monetary Authority of Singapore announced on Tuesday that it is expanding the scope of regulated payment services by introducing amendments to the Payment Services Act and its subsidiary legislation.

The amendments are expected to take effect from April 4 in stages, according to the statement. Specifically, the MAS noted that the new rules would cover custodial services for DPTs, facilitation of the transmission of DPTs, and facilitation of cross-border money transfers between countries “even where moneys are not accepted or received in Singapore.”

“The amendments will empower MAS to impose requirements relating to anti-money laundering and countering the financing of terrorism, user protection, and financial stability on DPT service providers,” the MAS said.

The MAS added that it would provide “transitional arrangements” for those conducting activities under the expanded regulatory scope, but they need to inform the regulator within 30 days and file a license application within six months from April 4.

Consumer protection

In a guideline released Tuesday, the MAS spelled out terms on the consumer protection measures DPT service providers should take under the Payment Services Act.

The measures include segregating customers’ assets, maintaining proper books and records, and ensuring the integrity and security of customers’ assets. The guideline is expected to take effect on October 4.

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About Author

Timmy Shen is an Asia editor for The Block. Previously, he wrote about crypto and Web3 for Forkast.News from Taiwan after spending more than three years in Beijing covering finance, entertainment business and current affairs at Caixin Global and Chinese tech at TechNode. His China-related reporting has also appeared in The Guardian. When he's not chasing headlines, you'll find him savoring hot pot and shabu shabu in a Taipei local haunt. Timmy holds an MS degree from Columbia University Graduate School of Journalism. Send tips to [email protected] or get in touch on X/Telegram @timmyhmshen.