Singapore Widens Crypto Rules to Cover Custody, More Transfers
Singapore Widens Crypto Rules to Cover Custody, More Transfers
Admin 02 Apr, 2024

Singapore expanded the scope of its digital-asset rules to cover the custody of tokens as well as more firms involved in fund transfers, part of the city-state’s effort to develop an institutional hub for the industry.

The changes to the Payment Services Act take effect in stages from April 4 and seek “to impose user protection and financial stability-related requirements,” the Monetary Authority of Singapore said in a statement on Tuesday.

Officials had already signaled plans to bring custody and more crypto-adjacent transfer services into the regulatory net. Singapore was stung by blowups in 2022 stemming from unfettered crypto speculation and has since reshaped regulations to spur productive uses of blockchain technology.

These include the potential for more efficient payments as well as making illiquid assets easier to buy and sell. At the same time, Singapore has sought to curb crypto speculation by retail investors.

Service providers that facilitate the transmission or exchange of tokens fall under the revised rulebook, even if they don’t come into possession of the money or coins involved. Similarly, companies that enable cross-border transfers now fall under the ambit of the act, even if the funds involved aren’t accepted or received in the city-state.

The monetary authority said such steps will enable it to “impose requirements relating to anti-money laundering and countering the financing of terrorism.”