Singapore Continues its March Towards Cryptocurrency Regulations

The city-state of Singapore is cementing its position a progressive destination for both cryptocurrencies and blockchain-based technology. Governmental authorities are now pressing to broaden the regulatory leeway of the Monetary Authority of Singapore (MAS).

Broader Regulatory Authority for MAS

The Monetary Authority of Singapore (MAS), which is also the city-state’s de facto Central Bank, might see its regulatory capabilities over the field of digital currencies significantly broadened.

Reportedly, the Minister of Education, on behalf of the Deputy Prime Minister and Minister-in-charge of MAS moved for first reading in parliament the Payment Services Bill.

If it passes, the bill will enable MAS to regulate payment services with regards to certain risks and concerns such as technology and cyber risks, money-laundering and terrorism financing, loss of funds owed to customers due to insolvency, fragmentations, as well as limitations to interoperability.

In terms of definitions, the Bill defines digital payment token service as “buying or selling digital payment tokens (commonly known as cryptocurrencies), or providing a platform to allow persons to exchange digital payment tokens in Singapore”.

Licensing Needed

According to the reports, providers of payment services of the kind would have to hold the respective, Bill-approved licenses.

The move by Singapore mimics one which took place in Hong Kong just a couple of weeks ago. In an official press release, Hong Kong’s Securities and Future Commission announced that it is set to adopt a regulatory framework which would regulate cryptocurrency trading, requiring licensing of cryptocurrency exchanges.

Speaking on the matter was SFC’s Chief Executive, Ashley Alder, who noted:

The measures announced today allow us to regulate the management or distribution of virtual asset funds in one way or another so that investors’ interests would be protected either at the fund management level, at the distribution level, or both. We hope to encourage the responsible use of new technologies and also provide investors with more choices and better outcomes.

The move by Singapore’s MAS marks yet another one of its steps towards cryptocurrencies and blockchain technology. Earlier this month, Live Bitcoin News reported that MAS, in partnership with SGX, Deloitte, Anquan, and Nasdaq, has launched a blockchain-based system for settling tokenized assets.

What do you think of Singapore’s approach to the field of cryptocurrencies? Don’t hesitate to let us know in the comments below!

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