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.
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.