MAS to Develop Framework for Crypto Payment Services

Singapore's watchdog has finalized the country’s new regulatory framework for cryptocurrency payment services
20 November 2018   867

The Monetary Authority of Singapore (MAS), which serves as the country's central bank, on Monday announced the completion of the development of a new regulatory framework for payment services. The new law "will provide a more favorable atmosphere for innovation in payment services, while at the same time ensuring that the risks of various payment channels will be successfully eliminated." This is reported by Bitcoin.com.

Cryptocurrency service providers currently outside the legal field of the country can expect to receive a license in accordance with the new regulations.

It is expected to affect electronic wallets and digital payment tokens such as Grabpay, bitcoin and ethereum. Activities to be regulated by the bill include the issuing of accounts and electronic money, the transfer of money within and out of Singapore, the acquisition of merchants who will use their platform, money changing, and the dealing in and exchange of digital payment tokens such as bitcoin.
 

Original Publication

According to the central bank, the law includes two parallel regulatory frameworks. The first will allow “to regulate systemically important payment systems for financial stability as well as efficiency reasons” the second provides for the licensing of retail payment service providers.

Service providers must apply for a license, either as a currency exchange service or as a payment institution, standard or large. The first two will be regulated in the context of countering money laundering and the financing of terrorism, while more complex rules are envisaged for large payment institutions.

Bakkt to Release Consumer App This Year

The app can be used for a wide range of tasks, e.g., crypto and securities trading, virtual goods purchase, etc
23 January 2020   102

Institutional Investor Platform Bakkt will release an app for retail investors this year, with which users can pay with cryptocurrency.

According to the president of Bakkt Adam White at the World Economic Forum in Davos, the application can be used for a wide range of tasks. In addition to trading cryptocurrencies, it will support various virtual “goods” like points of loyalty programs.

In addition, in the future it is possible to add securities trading, as well as the creation of a portal for shops and merchants. That is, the application will be more like a traditional fintech product like PayPal than a solution from a cryptocurrency exchange.

Although the Bakkt platform was originally created for institutional investors, the new director of Mike Blandina is very serious about entering the retail market. Earlier, he said that the application for retail investors should be released in the first half of 2020.

I do not think we are there yet. What gives me optimism is that we are seeing a lot of developer interest. I am confident that someone is going to find something.

 

Adam White

President of Bakkt

 White added that the cryptocurrency market is still underdeveloped.