Singapore Tightens Laws for Crypto Providers

Singapore's parliament has passed an omnibus bill on April 5, 2022 that will expand the powers of its primary market watchdog and introduce tighter regulation for crypto companies in the country.

Fazzaco Live Webinar on 7th April: Nahum Greenberg Talks About MarksMan Liquidity Hub​

First introduced in February 2022, the Financial Markets and Services Bill was designed to bring digital token services in Singapore in line with new standards set by the Financial Action Task Force (FATF), an intergovernmental organization fighting money laundering.

The legislation will require virtual asset service providers—or cryptocurrency companies—which only do business overseas to be licensed. Companies headquartered in Singapore and not servicing customers in the state weren't subject to anti-money laundering and terrorism financing laws.

Alvin Tan, Singapore's state minister of trade, said this created a regulatory gap where such companies presented "reputational risks" for Singapore. He explained that overseas companies that offer crypto services in Singapore are subject to the country's laws even though they aren't physically operating in the country.

The new bill gives the Monetary Authority of Singapore (MAS) the power to impose harsher penalties if companies fail to maintain the security of their platforms. The bill sets the maximum penalty for a breach of security at S$1 million (or $737,050), a significant increase from the current liabilities administered by MAS.

MAS will also have the power to issue prohibition orders against individuals deemed unfit to perform critical roles, activities, and functions in the financial and crypto industries.

Source: Crypto Slate