Countries regulating crypto laws for providers are no longer news, Singapore has passed a law to further tighten regulations for crypto providers and Virtual asset service providers in general.
Singapore has passed a bill tightening regulations for cryptocurrency exchanges, the latest hint of the country’s hesitant embrace of the industry.
Virtual asset service providers in the city-state that solely do business overseas will need to be regulated under the new legislation. Such businesses are currently unregulated in terms of anti-money laundering and counter-terrorist financing. On Tuesday, the law was passed by parliament.
Singapore’s tightening comes on the heels of the financial regulator’s recent decision to prohibit cryptocurrency companies from advertising their services to the general public, highlighting the country’s cautious approach.
When other governments, such as China, have opted for outright prohibitions, the city-state is welcome cryptocurrency innovations and has developed a framework for regulating the business. On the other hand, it is selective in who it allows in since it does not want residents to be burnt by speculation.
The biggest player to be disillusioned by the measures is Binance, which withdrew its application for a cryptocurrency exchange in December.
Other important provisions of the Financial Services and Markets Bill include:
- Gives greater powers to the Monetary Authority of Singapore to prohibit individuals who are deemed unfit from performing key roles, activities and functions in the financial industry. These will now include individuals providing payment services and conducting risk management.
- Imposes a higher maximum penalty of S$1 million ($737,050) on financial institutions if they experience cyberattacks or their services are disrupted.