Monetary authority of singapore cryptocurrency

The PSA, which came into effect on January 28, also introduces new licensable activities relating to the provision of payment services, resulting in what the Monetary Authority of Singapore MAS terms an omnibus framework, covering both new and traditional payment activities. Cryptocurrencies, virtual currencies and utility tokens have not previously been defined by legislation in Singapore. Utility tokens have generally not been regulated by the MAS as financial products, but intermediaries dealing with such utility tokens may now require licensing if such utility tokens constitute digital payment tokens. Cryptocurrency exchanges have so far not been regulated as financial institutions in Singapore, as long as the tokens listed on the exchange do not constitute capital markets products as defined by the Securities and Futures Act Cap. For example, if a cryptocurrency exchange processes either fiat currency or a currency that satisfies the definition of a digital payment token, it now requires licensing. Allowing its users to purchase, sell or exchange digital payment tokens for either fiat currency or other digital payment tokens would constitute the processing of fiat currency or digital payment tokens as the case may be.



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Singapore cbank issues guidelines to discourage crypto trading by public


The Republic of Singapore located in Southeast Asia has established itself as one of the largest hubs for crypto and blockchain in the world, boasting a crypto-friendly banking system and a digitized economy which attract financial service providers from across the globe. This article will provide a brief overview of the crypto ecosystem in Singapore and outline the set-up process for those seeking to provide services in the jurisdiction. The Payment Services Act came into force in January and sets out the main regulatory framework for blockchain and crypto in Singapore.

The Act regulates Digital Token Service Providers who deal in digital tokens by buying or selling digital payment tokens in exchange for money or another digital payment token. E ffectively, the Act sets out a licensing framework for centralised service providers such as exchanges and over-the-counter OTC desks which deal in digital payment tokens. D igital payment tokens are defined by the Act as:.

Therefore, digital payment tokens automatically exclude most stablecoins and all securities , and are mostly limited to tokens that are purely used as a means of payment generally or on the network on which they are issued. In order to provide payment services in Singapore a licence must be obtained from the Monetary Authority of Singapore.

Digital token service providers must obtain a standard payment institution licence or a major payment institution licence , and offer at least the service of dealing in digital payment tokens, with additional services that may be applied for as well. A number of institutions are exempt from this licensing requirement, namely licensed banks, merchant banks approved as financial institutions, licensed finance companies and persons licensed to carry on the business of issuing credit cards or charge cards.

In order to obtain a standard payment institution licence or a major payment institution licence, a number of requirements must be satisfied. Firstly, the applicant must be a company or a corporation formed or incorporated in Singapore or overseas, and must have a permanent place of business or registered office in Singapore. One of the executive directors must also be a citizen or permanent resident of Singapore. The Guidelines on Fit and Proper Criteria must also be satisfied, which require the applicant and its key individuals to be fit and proper person s who can prove to be competen t , honest, and financially sound.

Prospective applicants must appoint a compliance officer and an independent compliance function in Singapore , and must also have compliance and audit arrangements in place. The Monetary Authority of Singapore then takes around six months to process the application. BCA Solutions BCAS is well-placed to provide professional assistance in selecting the right jurisdiction for the set-up of your operations and the provision of services, with a team made up of regulatory and technical experts that have ample experience in relation to the blockchain and crypto industries.

Get in touch today for a free consultation call. Catering for your needs in the fourth industrial revolution. Licensing Regime In order to provide payment services in Singapore a licence must be obtained from the Monetary Authority of Singapore. Alexia Pollacco 09 Oct, You might also like.

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Singapore Central Bank warns crypto firms against promoting services

Singapore has issued new guidelines that limit cryptocurrency trading companies from advertising their services to the public, making it the latest country to bring in new rules to curb virtual currencies. The Monetary Authority of Singapore MAS explained that it has consistently warned that trading cryptocurrencies is highly risky and not suitable for the general public due to the fact that prices are subject to sharp speculative swings. MAS said it has observed some providers actively promoting their services through online and physical advertisements or through the provision of ATMs in public areas. It said that this could encourage consumers to trade cryptocurrencies on impulse, without fully understanding the risks.

/cryptocurrency. News and resources on digital currencies, crypto assets and crypto exchanges worldwide.

Singapore: Payment Token Derivatives – to Offer or Not to Offer?

Today the Monetary Authority of Singapore published guidelines on how cryptocurrencies can be promoted to the public. Essentially, all cryptocurrency providers may only promote crypto on their own websites and social media channels. Physical cryptocurrency ATMs are also a no-no. DPT crypto service providers should therefore not portray the trading of DPTs in a manner that trivialises the high risks of trading in DPTs, nor engage in marketing activities that target the general public. Historically, Singapore has been seen as one of the most crypto friendly jurisdictions. Clearly its aim is to enable the technology while protecting investors. However, the service is only available to accredited investors and institutions. Cryptocurrency advertising has started to attract regulator attention.


Independent Reserve gets crypto licence from MAS

monetary authority of singapore cryptocurrency

Cryptocurrencies such as ethereum pictured and bitcoin have grown in popularity among investors in recent years but their prices have been subject to wild fluctuations. In a media statement on Monday Jan 17 emphasising the "highly risky" nature of trading in cryptocurrencies, the central bank said that public spaces include public transport, public transport venues, public websites, social media platforms as well as broadcast and print media. These firms are also discouraged from providing physical automated teller machines ATMs to provide cryptocurrency services. MAS said that it has observed that cryptocurrency firms, or what it calls digital payment token DPT companies, have been actively promoting their services in Singapore, whether through physical or online advertisements or by providing ATMs in public areas.

Coinbase Global Inc. Bloomberg -- Singapore units of Coinbase Global Inc.

Singapore Regulator Clamps Down on Crypto Advertising

Find out how digital tokens work and what you should do to protect yourself from token-related scams. Tokens are a string of computer codes. They are usually issued in pairs as public and private keys. Buyers typically pay for the new tokens by transferring commonly transacted cryptocurrencies e. Bitcoin or Ether, to a wallet address provided by the seller. Buyers may also be able to pay for the new tokens by transferring fiat currency to a bank account provided by the seller.


Singapore has grand ambitions to become a global cryptocurrency hub

SINGAPORE — Singapore's central bank and financial regulator warned Tuesday of "sharp speculative swings" and potential risks for retail investors who put their money in cryptocurrencies. The Monetary Authority of Singapore "frowns on cryptocurrencies or tokens as an investment asset for retail investors," said Ravi Menon, its managing director, who was speaking to those at the Singapore Fintech Festival. Bitcoin and ethereum hit another all-time high in the U. Bitcoin was up 2. Ether — the world's second-largest digital coin by market value — was up 1.

The Monetary Authority of Singapore (MAS)—the city-state's financial services regulator—has told crypto companies to stop advertising their.

Singapore central bank curbs cryptocurrency promotion, bans crypto ATMs

MAS confirms regulatory approach for derivative contracts on payment tokens. On 15 May , the Monetary Authority of Singapore the MAS issued its response to feedback about its proposed regulatory approach for derivative contracts that reference payment tokens as underlying assets Payment Token Derivatives , confirming that it will regulate Payment Token Derivatives offered to Singapore investors through a pproved exchanges. The MAS considers it crucial that it has effective oversight of products offered on approved exchanges due to the systemic importance of such trading facilities and the risk of contagion to the wider financial system.


Regulation of DeFi: a perspective from Singapore

The new guidelines make clear that crypto companies should not engage in marketing of crypto currency products in public areas, either directly or through third parties which includes social media influencers. Companies who wish to advertise or market their DPT digital payment token services are able to do so on their own corporate websites, official social media accounts, or mobile applications. The guidelines also addressed cash-to-crypto ATMs that have begun to rise in popularity. The MAS has ordered for the terminals to be shut down because they provide a convenient means for purchasing crypto, which can lead to impulse buying and other risks. Singapore has been at the forefront of jurisdictions which have established a formal licensing framework for crypto activities, resulting in the country becoming a popular destination for crypto companies. According to MAS, approximately companies have applied for licenses to provide crypto services.

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Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy. In the recent years, Singapore has emerged as a global hub in technologies such as cryptocurrencies and blockchain. Simultaneously, the Monetary Authority of Singapore, has been taking steps to actively regulate cryptocurrency business in Singapore. In this piece, we look at the Singapore government's attitude towards cryptocurrency businesses, the new cryptocurrency regulation and licensing regime, and the challenges and opportunities facing cryptocurrency businesses in Singapore.

MAS has consistently warned that trading DPTs is highly risky and not suitable for the general public, as the prices of DPTs are subject to sharp speculative swings. The regulator felt that this could encourage consumers to trade DPTs on impulse, without fully understanding the attendant risks. DPT service providers are also not allowed to promote their services through the engagement of third parties, such as social media influencers.


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  1. Winthrop

    IN! Hooligans are divorced, they've got a mess of spam here)))

  2. Somerton

    I beg your pardon, this does not suit me. Who else can breathe?