The law was passed as part of the Financial Services and Markets Bill. It states that domestic virtual asset service providers operating overseas will be required to obtain a license.
So far, such platforms are not regulated for AML and countering the financing of terrorism. The move demonstrates that the city-state is stiffening rules for cryptocurrency providers by providing more power to the Monetary Authority of Singapore (MAS).
The bill voted by the Parliament also includes a maximum penalty of USD 737,050 on financial institutions if they face cyberattacks or their services are hampered.
The MAS previously clarified that it does not have any intentions to prohibit Bitcoin and other cryptocurrencies.
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