05.06.2023
Glory Faleke
Contributor
05.06.2023

Singapore introduces new requirements for cryptocurrency businesses

Singapore introduces new requirements for cryptocurrency businesses Singapore introduces new requirements for cryptocurrency businesses

Companies offering cryptocurrency services in Singapore will have to conduct more thorough client due diligence.

The notice, issued by the Monetary Authority of Singapore (MAS), also requires cryptocurrency firms to provide more detailed information on transactions, transfers, and accounts, as well as high-risk clients.

MAS, Singapore's central bank and financial regulator, has asked cryptocurrency companies to provide more information about their transactions, such as the total value of payment transactions, the number of accounts, and the number of high-risk clients, according to Cryptonews.

With such measures, the financial watchdog aims to eliminate potential cryptocurrency fraud risks while maintaining transparency and accountability in the industry. The condition will affect all cryptocurrency-related businesses licensed to operate in Singapore.

The published MAS notice highlights the particular focus on reporting services provided by cryptocurrency companies to the public. The document outlines reporting requirements: information on the number of client accounts, transactions, internal transfers, high-risk users, and payment totals.

The financial regulator also requires additional information on payment tokens and e-money services.

Singapore is now considered the most cryptocurrency-friendly country in the world, although many leading Southeast Asian countries are taking a more cautious approach to the crypto industry after last year's high-profile bankruptcies.

MAS differentiates its treatment of cryptocurrencies according to their unique characteristics. Some crypto assets will be treated as securities, while others will be regulated as digital payment tokens (DPT).

The MAS defines e-money as "any electronically stored monetary value that is denominated in any currency, or pegged by its issuer to any currency". Meanwhile, digital payment tokens are "any digital representation of value that is expressed as a unit, is not denominated in any currency, and is not pegged by its issuer to any currency". MAS stressed that if a crypto firm offers DPT or facilitates the exchange of these assets, it will be regulated as a DPT provider.

Our portal recently revealed that the XRP cryptocurrency is celebrating its 11th birthday.

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