Singapore Revises Payment Services Law to Expand Crypto Oversight

Previously it was reported that the Monetary Authority of Singapore (MAS) would receive expanded powers based on a draft law in the country's parliament. If passed, the changes could have a significant impact on crypto companies.

Provisions in the Singapore Financial Institutions Bill 2024 will, among other things, expand the authority of the MAS to issue directions to capital market services license holders who conduct unregulated business.

CMSL holders could offer unregulated products that could pose a risk of infection to their regulated activities, the bill says.

The rule cites Bitcoin futures and other payment token derivatives traded on overseas exchanges as examples. MAS has issued guidance on risk mitigation measures in conducting unregulated business with retail investors, but its remit is being expanded:

“The FIMA Bill will now allow MAS to issue written directions regarding the minimum standards and protections that must be applied when CMSL holders and their representatives carry out unregulated business,” said MAS, quoted from Cointelegraph, Tuesday (23/1/2024).

Cryptocurrency exchanges may be CMSL holders, as well as Primary Payment Institution (MPI) license holders. MAS implemented a series of measures to prevent speculation in crypto investments in November.

They also revised the regulatory framework for stablecoins in August, after which Circle and Ripple received MPI licenses, bringing the total number of licensees to more than a dozen.