Singapore’s central bank, the Monetary Authority of Singapore (MAS), has announced amendments to the Payment Services Act to impose additional requirements on digital payment token service providers and broaden the scope of regulated services. The central bank warned that entities that do not fulfill the requirements must cease the activities when the amendments come into effect.

Singapore Amends Payment Services Act

The Monetary Authority of Singapore (MAS), the country’s central bank, announced amendments to the Payment Services Act (PS Act) on Tuesday. The changes aim to broaden the scope of MAS-regulated services and impose additional requirements on digital payment token (DPT) service providers.

The amendments will expand regulated activities under the PS Act to include providing custodial services for DPTs, facilitating the transmission and exchange of DPTs between accounts, and facilitating cross-border money transfers between countries, even if funds are not accepted or received in Singapore.

Companies currently offering services under the PS Act must notify the MAS within 30 days and apply for a license within six months from April 4. This allows them to continue operating on a temporary basis while their applications are reviewed. “The licence application must be accompanied by an attestation report of the entity’s business activities and compliance with anti-money laundering and countering the financing of terrorism requirements, duly completed by a qualified external auditor, within nine months from 4 April 2024,” the MAS explained, cautioning:

Entities that do not fulfil the requirements above are required to cease the activities when the amendments come into effect.

The announcement further details that the amended Payment Services Regulations on safeguarding assets belonging to DPT service providers’ customers will take effect six months from April 4.

“These include segregating customers’ assets and placing them in a trust account for the benefit of customers, maintaining proper books and records, and ensuring that effective systems and controls are in place to protect the integrity and security of customers’ assets,” the Singaporean central bank described.

Source : Bitcoin.com / Apr 3, 2024