A few nations host been late to the gathering with regards to perceiving and managing advanced resources. The first occasion when that Singapore’s national bank gave a system for the guideline of installment related exercises was on Jan. 28 with the Payment Services Act.
Nonetheless, the Monetary Authority of Singapore (MAS) despite everything saw the potential dangers that advanced resources could posture to the economy, for example, illegal tax avoidance and financing fear based oppression. As a feature of the push to address this, the MAS gave a notification on Dec. 5 with respect to the “Avoidance of Money Laundering and Countering the Financing of Terrorism”.
The notification point by point against tax evasion (AML) and countering the financing of terrorisrm (CFT) necessities for computerized installment token specialist co-ops — including hazard appraisal and hazard relief, client due perseverance, dependence on outsiders, reporter records and wire moves, record keeping, suspicious exchange detailing, and interior strategies.
New rules for computerized installment specialist organizations
On March 16, the MAS explained their past notification with another 73-page set of rules for advanced installment token specialist organizations.
“Recent rapid technology improvements has [sic] a far-reaching impact, including in the world of payments. Enhancements in financial technology in particular, has opened up new opportunities for faster and more efficient payment methods. However, these new payment methods also give rise to new money laundering (ML), terrorist financing (TF), and proliferation financing (PF) risks.”
In particular, Singapore’s central monetary authority recommends tracing previous transactions of tokens ”as far back as necessary” to determine if there were any suspicious circumstances.
Singapore’s relationship with digital currency
The MAS has been a good example of a central bank honoring digital currencies while designing a rather benign regulatory framework that does not automatically discriminate against users and service providers.
“MAS’ surveillance suggests that virtual assets activity in Singapore has increased from a low base in recent years. Speculative trading of virtual assets on exchange platforms hit a peak in early 2018 with the rise in virtual assets market capitalisations, although the monthly trading volumes are less than 1% of those on the Singapore Exchange. Initial coin offerings (ICO) also gained popularity as a means for issuers to raise capital.”
Though Singapore’s Payment Services Act recognized “the potential ML/TF risks with regard to virtual assets”, most regulations put forth by the MAS have been characterized by many in the crypto industry as flexible and forward-looking.
Singapore inviting blockchain-based businesses inside
While the country is now actively developing a framework to attract crypto businesses, the MAS acknowledged that they were late to the party, and compromised only a small percentage of digital assets.
“It is also noted that despite Singapore’s FinTech hub status, virtual assets activity in Singapore forms a small portion of global activity, and is not material compared to traditional financial activities in Singapore’s financial system.”