The financial regulator in Singapore, the Monetary Authority (MAS) has just announced the introduction of the Payment Services Act (PSA), which aims to serve as the new regulatory framework for cryptocurrency payments.
The new framework will promote and boost the consumer confidence in transaction with digital assets, believes the regulator.
The legislation was passed in the beginning of 2019, but it took the country exactly 1 year to actually enforce the law.
What the PSA law would cover ranges from traditional payment service businesses, new types of payment offerings such as token ones. This means that cryptocurrency businesses advertizing businesses will also need to comply with the new framework.
This is what the assistant managing director at The Monetary Authority of Singapore said regarding the PSA:
The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry. The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models.
All digital payment businesses will have to register with MAS within one month. Upon completing the registration, they will be given a 6-month period to apply for the required payment institution license.
Singapore has long been known as a “crypto heaven”, as the government is constantly trying to boost the industry by introducing more favourable regulations for the sector. MAS has also taken steps to popularize blockchain in the country, as LeapRate reported recently.