Today we again look back to before the wide international spread of COVID-19. We look at another notable event that happened in the cryptocurrency world: Singapore’s regulation of cryptocurrencies.
In January 2020, Singapore implemented new legislation which regulates the operations of cryptocurrency firms. The new Payment Services Act will regulate cryptocurrency payments and trading enterprises. Additionally, crypto payment services must comply with Singapore’s Insurance Act, the Financial Advisers Act, Securities and Futures Act, and the Trust Companies Act.
The goal: facilitate growth and innovation
According to an official in charge of supervision of the crypto sphere, the regulatory structure is risk-focused and activity-based. The law strives to allow rules to be applied proportionately and to be robust to changing business models. The new act aims to facilitate growth and innovation. At the same time, it aims to reduce risk and foster confidence in the payments landscape.
Furthermore, regulators hope that the act will strengthen consumer protection and promote confidence in the use of e-payments.
Licensing requirements for cryptocurrency firms
According to the new regulations, the cryptocurrency-related firms will be required to apply for licenses. Examples include a money-changing license, a major payment institution license and a standard payment institution license.
As countries continue to appreciate more the importance of regulating cryptocurrencies, there will likely be more countries that follow Singapore’s example. Undoubtedly, they will do so with varying degrees and styles of regulation.