The Monetary Authority of Singapore (MAS) has proposed tightening control over cryptocurrency firms, namely to begin regulating companies operating both domestically and abroad.
MAS published a document concerning the introduction of a new law to regulate the financial sector. The regulator proposes to tighten control over cryptocurrency firms, namely to start regulating and issuing licenses even to those startups that provide their services outside the country. The document will be open for public comment until August 20.
Today, the agency controls cryptocurrency firms and exchanges based in the country under the Singapore Payment Services Act, which went into effect in January. However, the MAS powers only apply to those firms registered in Singapore and operating in that country. However, now the regulator proposes to control organizations based in Singapore, but doing business in other states.
“Given the specifics of remote work, cryptocurrency firms can register in Singapore, but not work with digital assets in this country. In fact, such firms operate in other jurisdictions and are not subject to applicable Singapore law. MAS must regulate these organizations in order to eliminate the risks associated with money laundering and terrorist financing, ”the document says.
This is not only about corporations and limited liability companies, but also about individuals. For illegal activities and non-compliance with the requirements of the Financial Action Task Force on Money Laundering (FATF), MAS proposes to impose a fine of 1 million Singapore dollars (about $ 700,000) or a ban on business. The regulator noted that a similar approach is already being used in the UK and Australia.
Despite the fact that MAS intends to tighten regulation of the cryptocurrency industry, the department is loyal to it. So, in November, the regulator said it could allow trading in cryptocurrency derivatives on regulated platforms in accordance with the Securities and Futures Act (SFA). In addition, in the spring, MAS "gave relief" to cryptocurrency companies, temporarily exempting them from obtaining a license to provide payment services until July 28, 2020.
