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?