Singapore Parliament has passed the Financial Services and Markets Bill on Tuesday, requiring virtual asset services providers, which do business overseas, to be licensed. The Monetary Authority of Singapore (MAS) under the new law will regulate virtual asset services providers created in Singapore but do not provide their services in the country. Under the law, virtual assets include digital payment tokens, cryptocurrencies, and digital representations of capital markets products.
Singapore Tightens Regulatory Oversight On Crypto Services Providers
The Parliament of Singapore has passed the Financial Services and Markets Bill that will allow the Monetary Authority of Singapore to regulate virtual asset services providers financial firms in the country, reported Bloomberg on April 5.
Currently, the companies providing virtual asset services in Singapore are already regulated under the MAS. However, the law will ensure the prevention of anti-money laundering and terrorism financing by regulating virtual assets providers in Singapore that do business overseas.
Monetary Authority of Singapore (MAS) board member Alvin Tan said:
“Virtual asset service providers created in Singapore that provide services only elsewhere are unregulated for anti-money laundering and countering the financing of terrorism (AML/CFT), which creates reputational risks for the Republic.”
Singapore has embraced the technological innovation of cryptocurrencies and blockchain technology. Moreover, the country has launched regulatory frameworks for cryptocurrencies, NFTs, and other virtual assets when other countries have proposed outright bans on the innovation.
Moreover, the law gives more financial regulatory powers to the Monetary Authority of Singapore to prohibit individuals who fail to perform key roles, activities, and functions in the financial industry. Also, financial institutions facing serious cyberattack or disruption to essential financial services could face penalties.
Singapore Leads in Virtual Assets and Crypto Adoption
Singapore is one of the leading countries in adopting virtual assets and crypto. However, the country has adopted a cautious approach to regulating and overseeing virtual assets service providers.
Recently, the financial regulator opposed the advertising of services by crypto companies to prevent investors from risks in trading and buying cryptocurrencies.
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