Singapore Announces New AML Rules for Crypto Businesses

Publicado en by Coindesk | Publicado en

The Monetary Authority of Singapore is updating its regulatory framework for digital payments.

Announced Tuesday, Singapore's Payment Services Act 2019 brings so-called Digital Payment Token services - effectively covering all crypto businesses and exchanges based in Singapore - under current anti-money laundering and counter-terrorist-financing rules.

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, 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.

When it comes to implementing crypto regulations, countries around the world are dancing to the beat of the latest Financial Action Task Force 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."

"The interesting thing about the Monetary Authority of Singapore is that, in a sense, it's FATF-ready," said Malcolm Wright, head of the AML Working Group at trade group Global Digital Finance.

Further aligning Singapore with the FATF, the amendments widen rules to include the transfer of DPTs; the provision of custodial wallets for or on behalf of customers; and the brokering of DPT transactions.

U.K.-based Bottle Pay, a cryptocurrency payments provider, said it was closing down in December 2019, citing forthcoming EU money-laundering rules; crypto mining pool Simplecoin and bitcoin gaming platform Chopcoin were also reported to be shutting down for the same reason.

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