Singapore To Give Regulators More Authority In The Industry
The Singaporean government has approved the legislation that will empower the Monetary Authority of Singapore (MAS) to respond to crypto companies doing business outside
On Tuesday, the government passed the financial services and Market Bill after the second reading on April 4. The MAS stated that the legislation will require a license from virtual asset service providers doing business outside Singapore. Apart from operating with a license, those doing business outside Singapore will also be subject to the anti-money laundering (AML) requirements.
MAS board member Alvin Tan said the regulatory body is taking the necessary steps to prevent digital asset holders from easily structuring their business to evade regulation since they operate mostly online.
“We could be exposed to reputational risks brought by DT service providers created in Singapore, “he said.
The MAS Steps Up Regulatory Efforts
The regulatory body will be empowered to carry out inspections of digital token service providers concerning CFT/AML compliance. The watchdog will also assist enforcement agencies and financial regulators in other countries. The MAS wants to strike partnership agreements with several regulators in other jurisdictions to enable al pates to work together to protect investors.
The MAS has been very busy over the past year. In December last year, it denied license applications from over 100 crypto-based firms that want to operate in Singapore.
Tan added that the DT service providers that do not provide any DT service in Singapore are currently unregulated. These services usually claim to have headquarters in Singapore to take advantage of the country’s global reputation. These unregulated entities generally create reputational risks for Singapore, Tan added.
Financial Industry Figures To Be Prohibited
The new regulation approach will also allow the MAS t issue prohibition orders against financial industry figures that are not fit to perform major roles in the entity.
Additionally, financial institutions have also been warned that they could be fined SGD 1 million (about $736,600) for a serious cyber attack on their financial services. This means that they have a role to ensure that their system is well protected and secured to prevent losses to investors.
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