The crypto landscape is drastically changing around the world – especially in Singapore where global cryptocurrency firms have been given the opportunity, through new payment legislation to expand the horizons of their operations to the country by obtaining operational licenses to function therein.
This legislation, The Payment Service Act which becomes effective by Tuesday, is the first of its kind in the list of comprehensive regulations, regarding the activities of companies involved in the trading and digital payments of tokens such as Ethereum and Bitcoin. Asides the adoption of cryptocurrency firms into the regulatory community, the law also grants the Monetary Authority of Singapore with corporate oversight authority for managing risks relating to cybersecurity and controls on terrorist financing and money laundering.
This action taken by the Singaporean government bridges the gap with Japan which is presently a major Asian Hubspot for cryptocurrency trading since the latter awarded 22 exchanges with trading licenses to operate in the country from 2017 to date. The increased interest of investors in digital tokens has brought about the need for several regulators around the world to create avenues to bring these exchanges under their watch, to prevent an incessant increase in illicit activities – especially money laundering using these media.
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The primary advantage offered by this new law signed into legislation by Singapore as stated by the CEO and founder of Ethikom Consultancy is to provide regulatory transparency on the innovative and disruptive kinds of payment activities such as cryptocurrency exchanges and e-wallets. This aids prospective applicants to sort out issues relating to compliance and licensing.
Mike Kayamori, the Chief Executive Officer at Liquid Group Inc. – a crypto exchange operator based in Tokyo is one among a number of firms who have welcomed this development with open arms and also plans to apply for its Singaporean license through its domestic subsidiary, Quoine Pte.
Luno, a London-based exchange, having obtained the license to operate in Malaysia last year is also currently in operation in Singapore. Its general manager, Sherry Goh. also backed the legislation made by the government, stating that it provides customers with the assurance that these licensed crypto operators can be trusted.
Binance Holdings Ltd., a stronghold in the crypto exchanges which although already has an office in Singapore, is yet to comment on whether or not the firm will be obtaining a license from Singapore.
Damola is a crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through positive contribution to the organization that aspires for excellence.