Following an amendment passed on January 4, 2021, all cryptocurrency service providers must now obtain a license from the Monetary Authority of Singapore (MAS), the country’s financial regulatory body.
Previously, only those service providers that were in possession of the money or cryptocurrency involved were regulated. But under the new law, all entities that facilitate the transmission, exchange, or storage of cryptocurrencies are supervised by the MAS.
Such entities now must cooperate with the authority to be formally licensed and must devise customer due diligence and transaction monitoring programs that comply with MAS regulations.
The idea is to stop all crypto-related financial crime including money laundering. Furthermore, it will give them visibility into cross-border transactions where the service provider in Singapore is simply a facilitator and not the sender or recipient.
Through this amendment, the MAS will have the authority to impose regulations on cryptocurrency service providers focused on consumer protection and financial stability.
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