- In Singapore, attempts are being made to regulate the crypto space by introducing new laws that come into force today.
- The legislation allows the operation of crypto-companies’ licenses that comply with the regulations.
- The move will narrow the gap between Singapore and Japan and is part of a recent effort by regulators in several nations to secure the space and provide regulatory clarity.
Singapore – already one of the most crypto-friendly regions in the world – recently introduced a new payment law to support crypto companies. Thanks to the legislation, companies with digital currency can expand their business activities in the country and, for the first time, easily apply for and obtain an operating license.
The law is known as the Payment Services Act and comes into force today. It is the first comprehensive regulation for crypto-based companies whose activities can range from crypto trade to the execution of digital payments.
The new law will also serve more than a single purpose. Firstly, it will ensure that crypto-companies comply with the regulations, and the Singapore Monetary Authority will have formal oversight powers over the crypto-sector. This includes monitoring cyber security risks, but also controlling criminal activities such as money laundering or terrorist financing.
Investor interest encourages regulators to act
The new step will change the crypto sector in Singapore to a point where it is approaching the regulatory situation in Japan, which is currently an important crypto currency centre in Asia. To date, Japan has issued licenses for 22 digital wallets over the past three years.
At the same time, investor interest in digital currencies continues to grow worldwide, which has prompted several regulatory agencies to closely scrutinize crypto-related venues. They are deeply concerned about illegal activities such as money laundering and other misuse of digital currency and are doing everything possible to improve the monitoring of crypto-currency transactions.
However, the new legislation in Singapore offers one key benefit: it provides clarity on many new types of crypto payment activities. These include things like crypto exchanges, wallets and more.