Singapore has introduced new payment legislation that offers global cryptocurrency firms a chance to expand their operations in the country. The Payment Services Act, which comes into force on Tuesday, is the first comprehensive regulation for companies handling activities ranging from digital payments to the trading of tokens such as Bitcoin and Ether.
We welcome the Act with open arms, said Liquid’s CEO Mike Kayamori, who was quoted in a «Bloomberg» report. The firm will apply via its local Quoine Pte subsidiary. Tokyo-based crypto exchange operator Liquid Group Inc and London-based Luno, which already operate in Singapore, are among the firms planning to apply for the licenses.
Increased investor interest in digital tokens has encouraged several regulators around the world to bring the venues under their scrutiny, especially for money laundering and other illicit activities.
Besides bringing crypto firms into the regulatory fold, the law will hand the Monetary Authority of Singapore formal supervisory powers for cybersecurity risks and controls on money laundering and terrorism financing. The new measure narrows the gap with Japan, currently a major Asian centre for cryptocurrency trading after 22 exchanges received licenses there since 2017.
The key advantage of Singapore’s new legislation is providing regulatory clarity on new types of payments activities such as e-wallets and cryptocurrency exchanges, according to Nizam Ismail, the founder, and chief executive officer of Ethikom Consultancy, which helps potential applicants with licensing and compliance issues.
Twenty of the top 50 crypto exchanges are based in the Asia-Pacific region and accounted for about 40 percent of Bitcoin transactions in the first half of last year, according to data from Chainalysis.