Posted 1 year ago | by Ben Armstrong
Monetary Authority of Singapore MAS Further Defines Crypto Regulations
The new Payment Services Act from the Monetary Authority of Singapore MAS will require that crypto business obtain a license. In fact, there are three kinds of licenses that crypto businesses will need to choose from, in order to continue doing business legally in Singapore.
The three classes of licenses are: a major payment institution, a money-changing license, or a standard payment institution. Crypto bushiness will fall into one of these three categories, and need to get their license!
According to a MAS representative:
“The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”
Singapore has been one of the best places to set up shop as a crypto business, and it looks like the MAS is further creating regulatory certainty for the crypto sector.
The MAS Gets it
Most people think that the crypto world is shady, and somehow crypto transactions are at-risk for money laundering. Of course, cryptos can be used for nefarious purposes, but the established financial system is just as likely to be used to break the law.
The MAS was helpful in unraveling the 1MDB scandal that rocked Malaysia in recent years. The details of how more than a billion USD worth of public funds were stolen by the ex-president of Malaysia, with help from major banks like Goldman Sachs, is beyond the scope of this article.
Needless to say, a lot of that dirty 1MDB money flowed into and through Singapore, as it is the regional banking capital for Malaysia. The sad fact is that greedy people will use any system to steal from the people that trust them, no matter how it is organized.
Regulations Help Build an Industry
Singapore and the MAS have been on the right side of crypto regulations for years. Unlike many nations, Singapore is setting itself up to be one of the most competitive financial hubs globally over the next century.
Crypto companies can invest in both talent and infrastructure in Singapore, without worrying about how new regulations might destroy their investment. As the crypto industry grows, Singapore is likely to be at the forefront of global crypto development.
Nations that refuse to allow the use of this new technology will be left behind, and will be client states to the early adopters.