On Tuesday, the Monetary Authority of Singapore (MAS) expanded restrictions on digital payment tokens (DPTs) aimed at preventing money laundering and terrorist financing.
Singapore's approach to crypto regulation
The changes mean that Singapore's Payment Services Act now covers more activities – including the provision of custodial services, facilitating DPT exchange or transfer between accounts and facilitating cross-border money transfers.
Cross-border money transfers made by entities in Singapore are now covered by the law, even when the money is not accepted or received in the city-state.
The law was introduced in 2020 to regulate the industry by requiring things like licenses for payment service providers to operate in Singapore, proper accounting and the separation of any client assets from the company's.
