New Era in Singapore: Cryptocurrency Licenses Comes into Effect!

The new legislation on cryptocurrencies in Singapore came into effect on 28 January. The newly created “Payment Services Act” will regulate crypto payment transactions and trading enterprises, covering some aspects of the regulatory system that require traditional payment systems to license.

Entrepreneurs who trade with cryptocurrencies and offer cryptocurrency access services must comply with the new regulations. Under the Financial Advisors Law, Insurance Law, Securities and Futures Law, Trust Companies Law, we encounter laws with which cryptocurrency entrepreneurs must comply.

With the newly created laws, companies offering crypto services will be under the control of the Singapore Monetary Authority. According to the press release issued by the regulatory agency, Loo Siew Yee, General Manager of the regulatory agency, said that with the new law created in Singapore, they aim to expand the regulatory structure for payment services and increase consumer trust in the use of payments:

“The Payment Services Law will provide a flexible and forward-looking regulatory framework for the payment systems industry. The regulatory structure, which is set up as business-based and risk-oriented, enables the rules to be applied proportionally and to adapt to changing business models. The Payment Services Act also minimizes risks, enhances confidence in payment mechanisms, and facilitates issues such as growth and innovation. ”

Requirements for the License

As part of the new regulations, cryptocurrency firms are required to follow some procedures such as currency swap license, standard payment authorization license and general purpose payment institution license.

The cryptocurrency exchange Liquid in Japan and the cryptocurrency exchange Luno in London are preparing to apply for the license. “We have been waiting for the new law for a long time and we welcome it,” said Liquid CEO Mike Kayamori.

With such new regulations brought to the cryptocurrency sector, its usability will become more convenient. Judicial institutions constantly warn about the licensing of crypto businesses and this is the most important problem for the sector. With the fulfillment of the requirements, the judiciary seems to focus more on the issue, and in the future it will pave the way for BitLicence. We advise you to stay on track to be informed about developments.