The Singaporean government has announced that all crypto trading outfits or entities performing similar services would need to obtain a license to carry out their operations in the country. The Parliament also noted that the monetary regulation had been given the power to go after those who err against the recent law passed in the country. The new law aims to curb illegal activities and financial crimes, ranging from terrorism-sponsoring to drug trafficking and others.
While explaining the proposed law at the Parliament, the transport minister stated that the regulations would help to reduce the rate at which fraudulent individuals and organizations use digital exchanges to engage in money laundering and the transferring of illegal assets across borders. Kung further lamented the rate at which criminals use cryptocurrencies to perpetrate illegal money transfer dealings, sponsor terrorist organizations, and engage in other numerous shady deals.
The regulations will extend to other sectors
Presently, the MAS is faced with the primary responsibility of regulating crypto transactions. But the fresh regulations will empower the agency to supervise all cryptocurrency transactions in the country and exercise its power on every entity, including companies and other companies that deal in digital assets. Consequently, this move will extend to businesses that have no crypto assets in their custody. But since those businesses provide crypto-related services, the proposed law will affect them.
According to the government official, the regulations will redefine international money transfer dealings to cover the provision of transfer services to individuals or businesses between countries even if the exchange provider does not give or receive the money in the country. Hence, the MAS regulations will be extended to such exchanges even if the funds do not pass through Singapore.
Also, companies engaging in cryptocurrencies must now enforce new standards to make sure they give extra protection to their customers’ funds and identities. Thus, financial institutions engaging in digital assets and related services must also commence Know Your Customer (KYC) programs and security insurance policies.
Minister wants crypto sector in Singapore regulated
However, the minister dismissed any insinuation that he is troubled by the risks or threats cryptocurrencies may pose. He downplayed the financial activities that flow through the crypto world compared to the conventional financial sector. However, he admitted that the crypto industry is moving at a faster speed than expected.
Also, companies engaging in cryptocurrencies must now enforce new standards to make sure they give extra protection to their customers’ funds and identities. Thus, financial institutions engaging in digital assets and related services must also commence Know Your Customer (KYC) programs and secure insurance policies.
He explained that the government has carefully studied the present development of DPTs, “whose values are pegged to stable assets to gain users’ confidence.” It is, therefore, important for MAS to be able to respond to market developments and address new risks in a timely manner.” He promised that MAS would henceforth rise quickly to address relevant issues. He added that DPTs might be required to separate their customers’ assets from theirs.