The Central Bank of Singapore has completed the development of a new regulatory framework for payment services, which now includes cryptocurrency. Service providers that fall outside the current regulatory framework will need to obtain a license under the new regime.
Singapore is finalizing the regulatory framework for Cryptocurrency payment services. On Monday, the central bank (MAS) announced that it had completed the development of a new regulatory framework for payment services. "The bill on payment services". "The goal is to ensure favorable development, ensuring that risks in the value chain of payments will be mitigated", explained the central bank.
"The bill was presented to Parliament by the Minister of Education and a member of the board of MAS Ong Ye Kung", reports the Straits Times.
Encryption service providers that go beyond current regulation can rely on a license in accordance with the new regulatory framework. This is expected to affect e-wallets and digital payment markers, such as Grabpay, Bitcoin and Ethereum.
Activities should be regulated by the bill, including issuing bills and electronic money, transfers within Singapore acquired by merchants who will use their platform to change currencies, as well as exchange digital payment tokens.
The bill consists of two parallel regulatory frameworks. The first allows the central bank to regulate systemically important payment systems for financial stability and efficiency. Another requires the provision of retail payment licenses.
The Straits Times stated in detail that payment service providers must apply for a license from a standard or main payment institution. They will be regulated primarily because of the risk of money laundering and the financing of terrorism.
Editor: Yuliya Soroka