Singapore’s Payment Services Act enters into force

Starting 30th January 2020 the Monetary Authority of Singapore (MAS) will enforce the Payment Services Act with an aim to incentivize cryptocurrency-related growth in the region, stated the official media release on Tuesday.

The crypto-friendly initiative called the Payment Services Act was initiated to encourage crypto enterprises to lawfully conduct operations in the country by applying for a license and even get an opportunity to expand their businesses. The move is said to bring Singapore at par with other crypto-favoring countries like Japan, which has already approved over twenty-two licenses since 2017.

Payment Services Act to spearhead crypto growth in Singapore

Once the legislation takes effect on Thursday, it will serve as a comprehensive framework for all crypto-related enterprises engaged in services ranging from cryptocurrency trading to digital payments. It will also offer specifications and legal precepts on how to trade cryptocurrencies lawfully along with details on eWallets and taxation.

And while the growing interest in the crypto domain has proved to be a boon for this small yet powerful economy, the industry has been often put into bad light over its illicit use in money laundering and funding terrorist operations, thanks to its ability to facilitate anonymous and decentralized transactions. Thus, according to the MAS, the new regulation will not only exert supervisory control on the transactions taking place but also curtail wrongdoings to no small extent.

Asia – a hotbed of crypto activities

Meanwhile, among the firms lining up to apply for licenses, is the mobile payment services company named Liquid Group and crypto storage company Luno. Another leading cryptocurrency exchange, Binance Holdings, is likely to seek a license from the MAS, although it has not been officially confirmed yet.

In related news, a recent report from Chainalysis revealed that the Asia Pacific region is the new home to cryptocurrency exchanges as twenty out of the top fifty exchanges hail from this region. In fact, in a series of interviews with top crypto professionals in the industry, conducted by Coinhacko.com earlier this month, suggested that Asia will be the breeding ground of crypto-related activities in 2020, and Singapore’s first grand-scale move is definitely an illustration of that.

Featured Image by Pixabay

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