The government of Singapore is all set to strengthen the position of cryptocurrencies in the country by launching the Payments Services Act on January 30, 2020. The regulatory act will aid cryptocurrency firms and entities in expanding their operational capabilities in the country by allowing them to acquire operating licenses in a convenient manner. The regulatory institution, Monetary Authority of Singapore (MAS) will be bestowed upon with the power to supervise and manage the issues such as cybersecurity, money laundering, and terror financing.
According to the recent reports, the act will be drafted out in a way that it will provide complete guidelines for the crypto industry concerning the related core areas. It will offer the necessary regulations involving digital payments, trading of digital coins along with working rules for eWallets, and cryptocurrency trading exchanges. The implementation of the Payment Services Act will present Singapore as a major player in the global crypto market and will help the country in giving stiff competition to Japan, which introduced a licensing system in 2017.
Since the introduction of cryptocurrencies in the financial arena, the regulatory authorities around the world have shown strict concerns over its security and channelization. The governments of various countries have advocated that the use of cryptocurrencies aids illicit activities and frauds in the economy. This has forced the regulatory watchdogs from around the world to come together and design a framework capable of subsiding such illegal activities hovering around cryptocurrencies.
The leading firms striving to apply for the license include Liquid Group Inc. and Luno. While both the firms operate in Singapore, Liquid will apply through its local subsidiary, Quoine. Though Binance Holdings has an office in Singapore, the firm has refused to unveil its plans about acquiring the license.
Singapore is in constant attempts to modernize its banking operations. It recently announced that it would be providing digital banking licenses, which eventually attracted applications from leading firms and entities.