The Monetary Authority of Singapore (MAS) has promised that the amendments to the Payment Services Act will come into effect gradually, starting on April 4, 2024. The amended rules will apply to service providers involved in the transfer and exchange of tokens, even if the services themselves do not own crypto assets. Companies conducting international transactions with digital assets should be subject to the updated law. Regardless of whether these companies accept funds within Singapore.
The new rules will also oblige companies working with digital currencies to separate client assets and their own funds, maintain accounting records, and also have technical means to protect assets.
Entities covered by the enhanced Payment Services Act will be required to register with the MAS within 30 days and apply for a license within six months of 4 April 2024. The rules will allow companies to operate on a temporary basis while applications are pending.
The application for a license must be accompanied by an audit report carried out by a qualified independent auditor within nine months of April 4, 2024. Companies that do not meet the requirements are required to cease their activities after the amendments come into force, the regulator warned.
In November, the Singaporean regulator restricted crypto companies from working with retail clients, and at the beginning of the year, MAS announced a ban on spot Bitcoin ETFs for retail investors, despite the fact that this investment product was approved in the United States.
Source: Bits
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