Singapore To Streamline Financial Watchdog’s Authority Over Crypto Firms

Singaporean government has adopted laws that will give the Monetary Authority of Singapore, or MAS, more authority in dealing with crypto businesses operating outside of the country.

iexclusivenews reports that following a second reading on April 4, the government of Singapore passed the Financial Services and Markets Bill on Tuesday, according to records from the Singapore Parliament.

According to the MAS, virtual asset service providers doing business outside of Singapore will be required to be regulated and subject to anti-money laundering and counter-terrorist financing standards, or AML and CFT, respectively.

“Digital token service providers could easily structure their businesses to evade regulation in any one jurisdiction, as they operate mainly online.”

Meanwhile, iexclusive News Nigeria reports that Alvin Tan, a member of the MAS board of directors, spoke on behalf of senior minister Tharman Shanmugaratnam.

“We could be exposed to reputational risks brought by DT service providers, which provide services relating to virtual assets such as Bitcoin outside Singapore.”

The financial watchdog would have the authority to conduct AML/CFT cocompliance checks of digital token service providers.

Assist other countries’ financial regulators and enforcement agencies. 

More than 100 crypto businesses applied for licenses to operate in Singapore, but the MAS refused them all in December.

“DT service providers created in Singapore without providing any DT services are currently unregulated for AML/CFT,” said Tan. “These entities may claim to be headquartered here to take advantage of Singapore’s global reputation. This creates reputational risks for Singapore.”

The measure also gives the MAS more power to impose prohibition orders against anyone in the financial industry who have “proven themselves to be unsuited to perform critical roles, activities, or functions.”

In addition, “for a major hack or disruption to key financial function,” financial institutions might face a fine of one million Singapore dollars, or $736,589 USD.

In January, MAS published guidelines effectively prohibiting cryptocurrency companies from advertising on public transportation, public websites, social media platforms, and broadcast and print media.

Crypto firms licensed in Singapore are limited to promoting or advertising services on their own websites or mobile applications at the time of publication.

Bitstamp Limited, Coinbase, and Gemini Trust have all been given exemptions from having to get a license in Singapore.

Binance said in December that it had withdrawn its application with the MAS and will “wind down” its operations in the country by February.