The country’s central bank and monetary authority of Singapore is moving forward to bring many regulations that will deal with retail payment services. This single legislation will also include bitcoin and cryptocurrency exchanges.
With an announcement on Tuesday, the Monetary Authority of Singapore launched the second revision on its payments service bill, a regulatory network designed for payments that will propose to streamline the regulation of all payment services available in the country under a single legislation. The notable bill will also consider the virtual currencies being traded in the country. Many cryptocurrency exchange platforms have evolved in recent times that are operating in the country without any regulatory framework. As a regulator, MAS will have to prevent money laundering and terrorism funding while also safeguarding consumer’s funds.
Under the new regulatory framework, payment firms as well as bitcoin exchanges will need a single license to operate in the country.
“The new framework will expand the scope of regulation to include domestic money transfers, merchant acquisition and the purchase and sale of virtual currencies,” reads an excerpt from MAS’ announcement. “Only payment activities that face customers or merchants, process funds or acquire transactions, and pose relevant regulatory concerns will need to be licensed.”
The managing director of MAS Ravi Menon said “We want to put in place a forward-looking regulatory regime to encourage wider adoption of secure e-payment solutions. The novel, activity-based licensing framework aims to right-size regulatory requirements to address the risks posed by specific payment activities. This will help to protect consumers and merchants while creating an environment conducive for innovation in payment services.”
The second consultation is now open to public feedback and will run up to 8th January 2018