Singapore on Tuesday passed a law requiring virtual asset service providers to be licensed if they do business overseas, according to Bloomberg

See related article: How Singapore is reimagining its ‘Asian crypto hub’ image

Fast facts

  • The new legislation is an attempt by The Monetary Authority of Singapore (MAS) to ensure that it has adequate supervisory oversight over such service providers. 
  • The law brings oversight to crypto firms when it comes to anti-money laundering and counter terrorism financing.
  • “[Digital token] service providers created in Singapore without providing any [digital token] services in Singapore are currently unregulated for AML/CFT,” MAS board member Alvin Tan said. “Further, these entities may claim to be headquartered here to take advantage of Singapore’s global reputation,” he added. “This creates reputational risks for Singapore.”
  • The MAS in January issued guidelines prohibiting the advertising of crypto services to the general public, in an effort to discourage retail investors from crypto trading. 

See related article: Is Singapore retreating from its global crypto hub ambitions?