Singapore Parliament has passed a Financial Services and Markets Bill that will now require all domestic crypto service providers who have been operating overseas to obtain a license. The law requires all city-state crypto businesses operating in foreign countries to comply with stricter laws, including obtaining a license to comply with anti-money laundering and counter-terrorism rules.
Singapore Introduces A New Law For Crypto Service Providers
According to Bloomberg, the new law passed by the Singapore Parliament on Tuesday seeks to regulate city-state virtual asset providers who have been operating overseas. At present, such firms are not under any regulatory scrutiny concerning anti-money laundering or counter-terrorism measures.
Singapore’s new law comes amidst the government’s tightening stance on crypto advertising which involved discouraging crypto companies from advertising their services in public.
As Singapore has been working on developing a regulatory structure to conduct crypto transactions in an organized manner, it seems that the country is ready to embrace cryptocurrency and blockchain technology while working actively to promote its adoption instead of outright banning it like China.
In addition to this, the bill also recognizes the power of the Monetary Authority of Singapore (MAS) and adds that the MAS has full power to prohibit individuals ”deemed unfit from performing key roles, activities, and functions in the financial industry. These will now include individuals providing payment services and conducting risk management.”
Moreover, the Bill also imposes a maximum penalty of $1 million ($737,050) on financial institutions in case their services are hampered or disrupted, or they encounter any cyber attacks issues.
While Singapore looks forward to adopting a regulatory structure concerning crypto, its recent move might discourage emerging crypto firms from promoting their services, which may adversely affect the existing crypto services in the region.