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Tuesday, January 28, 2020

Rules for Crypto Business in Singapore

Interesting as an example of what kind of regulations are being written.  An note the connection to business models. How about process models?  Installation of specific risk and fraud predictions and alarms?

The Monetary Authority of Singapore (MAS) is updating its regulatory framework for digital payments. in Coindesk

Announced Tuesday, Singapore’s Payment Services Act 2019 (PSA) brings so-called Digital Payment Token (DPT) services – effectively covering all crypto businesses and exchanges based in Singapore – under current anti-money laundering (AML) and counterterrorist-financing (CTF) rules.

As such, crypto businesses in Singapore are required to first register and then apply for a license to operate in the jurisdiction. 

Similar to the Fifth European Anti-Money Laundering Directive (AMLD5), which went into effect Jan. 10, Singapore’s new rules are long awaited: the PSA was passed back in January 2019. In the intervening months, Singapore has further cemented itself a forward-thinking jurisdiction in regulating the cryptocurrency industry.

As of Jan. 28, firms will have a month to register with MAS, stating they are based in Singapore and are operating a DPT business. Once firms have registered, there’s a six-month grandfathering period during which they have to apply for a payment institution license. 

“The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry,” MAS Assistant Managing Director Loo Siew Yee said in a statement. “The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”

When it comes to implementing crypto regulations, countries around the world are dancing to the beat of the latest Financial Action Task Force (FATF) recommendations, first made in October 2018 and then updated in June 2019. 

This means preparing for a future when payment data relating to the originator and beneficiary of a crypto transaction travels with the payment, guidance known as FATF’s “travel rule.”  .... " 

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