The Monetary Authority of Singapore (MAS) has just announced that the Payment Services Act, the country's new legal framework to regulate cryptocurrencies and digital payments, has just come into force.
According to the official statement of MAS, this new law will help "strengthen consumer protection and promote confidence."
The aim of the law, which was approved back in January last year, is to regulate companies in the digital payments industry, including "new types of payment services, such as services based on digital payment tokens." Therefore, all crypto exchanges and cryptocurrency companies must comply with the law.
The assistant managing director at MAS, Loo Siew Yee, has said:
"The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry. The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models."
All crypto companies in Singapore are required to register within one month.
Registered crypto companies must comply with all anti-money laundering and anti-terrorist financing requirements.
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