Singapore's financial regulator, which also serves as the country's central bank, The Monetary Authority of Singapore (MAS), is seeking to introduce stricter rules for the crypto industry to adhere to the new Financial Action Task Force (FATF) standards.
The financial watchdog is seeking to have more powers that will help in prohibiting any unsuitable enterprise from doing any business within the country. The financial overseer is also seeking powers to oversee, license, and regulate all crypto businesses which offer services in other countries but are based in Singapore.
As per the proposal, the country's financial authority is seeking to expand the provisions of the Payment Services Act (PSA), which came into effect in January this year. If the proposal is adopted, Virtual Asset Service Providers (VASPs) will be required to conduct their operations in other countries using the same standards and regulations in their country of origin, Singapore. Although the MAS, back in March, already exempted a few of the top crypto companies: Binance, Coinbase, Gemini, and Ripple.
The regulator has already published a consultation paper seeking public input and feedback in regards to the expanded powers of the Monetary Authority of Singapore.
The regulator argues that the new proposal will put a halt to regulatory arbitrage where multinational VASPs choose the regulations to adhere to if they suit their mode of business.
The VASPs that will be significantly affected by these proposals are the ones that work abroad but maintain a “meaningful presence” in the city-state; that is, their directors and offices are located within Singapore. Corporations registered in Singapore, partnerships, as well as limited liability partnerships created in the country, will also be affected by the new legislation.
The financial regulator also explains that the regulations will help Singapore to adhere to the set anti-money laundering (AML) standards that were set late last year by the global financial watchdog FATF.
The public has until August 20 to send their views and opinions.
Asia's most preferred countries, is Singapore, for the crypto industry, because of its friendly crypto environment. There are more than 150 crypto and blockchain-based firms headquartered in the city-state.