Author: Syedur Rahman
16 February 2020
2 min read
Syedur Rahman of Rahman Ravelli details the recent licensing of cryptocurrency activity in Singapore.
As of 28th January 2020, legislation is in effect that regulates the operations of cryptocurrency firms in Singapore. The Payment Services Act (PSA) was introduced to serve as the new regulatory framework for cryptocurrency payments.
The Act regulates seven types of payment services, which are defined as follows:
Any business offering any of the above services must apply for licence, unless otherwise exempt. The type of licences are set out below:
An applicant for a standard payment institution licence or major payment institution licence must be a company incorporated in Singapore or overseas, have a permanent place of business or registered office in Singapore and have at least one executive director who is a Singapore citizen, a permanent resident of Singapore or belong to a class of persons prescribed by the Monetary Authority of Singapore (MAS). It must also meet financial and operational requirements that the MAS may specify for the duration of the licence.
An applicant for a money-changing licence must have a permanent place of business or a registered office in Singapore. The MAS has to be satisfied about the financial condition of an applicant for any of the three licences and believe that they are a fit and proper person under MAS guidelines and that granting of a licence is in the public interest.
The MAS has stated that it expects the new regulatory framework to strengthen consumer protection and promote confidence in e-payments.
This article also featured on Lexology.com.
Syedur Rahman is known for his in-depth experience of serious fraud, white-collar crime and serious crime cases, as well as his expertise in worldwide asset tracing and recovery, civil recovery, cryptocurrency and high-stakes commercial disputes.