Singapore’s Payment Services Act geared at crypto firms’ expansion

Singapore’s Payment Services Act took effect on Tuesday, providing global cryptocurrency companies with the opportunity to expand their operations into the city-state by applying for operating licences for the first time. The first comprehensive law is geared at firms that engage in activities such as digital payments and trading of tokens such as bitcoin and ether. Nizam Ismail, founder and chief executive officer of Ethikom Consultancy, which assists potential applicants with licensing and compliance issues, said the major advantage of Singapore’s new measure is that it offers regulatory clarity on new types of payment activities such as e-wallets and cryptocurrency exchanges.

The regulation is seen to narrow the gap with Japan, a huge hub for cryptocurrency trading in Asia with 22 exchanges receiving licences since 2017. The new law also gives the Monetary Authority of Singapore formal supervisory powers for cybersecurity risks and controls on money laundering and terrorism financing.