The Monetary Authority of Singapore implements relevant requirements for cryptocurrency custody services
ChainCatcher news, according to the official announcement, the Monetary Authority of Singapore (MAS) has announced amendments to the Payment Services Act (PS Act) and its subsidiary regulations, expanding the scope of payment services regulated by MAS and implementing user protection and financial stability-related requirements for digital payment token (DPT) service providers. These amendments will take effect in phases starting from April 4, 2024. The amendments will bring the following activities under the regulation of the PS Act:
- Providing custody services for DPT;
- Facilitating the transfer of DPT between accounts and the exchange of DPT, even if the service provider does not handle the funds or DPT;
- Facilitating cross-border fund transfers between different countries, even if the funds are not accepted or received in Singapore.
In addition, transitional arrangements will be provided for entities currently conducting activities under the expanded scope of the PS Act. These entities must notify MAS within 30 days starting from April 4 and submit a license application within six months from April 4, 2024, if they wish to temporarily continue these activities while MAS reviews their license application. Entities that do not comply with the above requirements will be required to cease activities when the amendments take effect.
