Singapore is one of the most cryptocurrency-friendly areas in the world. This unique city-state fully supports blockchain technology and related development opportunities – including cryptocurrencies. Today, the regulation which is designed to facilitate the legal conduct of business based on cryptocurrencies enters into force. It means, that from now companies can obtain a license to provide crypto services. Can Singapore – thanks to this – become the Asian equivalent of Malta?
Will there be cryptocurrency exchanges in Singapore?
The Payment Services Act – adopted by the Singapore Parliament in September 2019 – entered into force today. The regulations covered a wide range – from trading cryptocurrencies (i.e. exchanges) to make payments via digital means (payment gateways). The creation of this law had one purpose – to support enterprises that would like to base their activities on the cryptocurrency market.
The new regulations allows companies to obtain a license to sell, buy, operate payments and create a cryptocurrency-friendly platform – but that’s not all. Thanks to this law, the Singaporean authorities will be able to control companies in terms of counteracting terrorism and money laundering. A company that wants to run its business legally must apply for the so-called operational licenses. The law is also intended to encourage consumers and increase their confidence in cryptocurrency and electronic payments.
MAS announced the commencement of the Payment Services Act, which will enhance the regulatory framework for payment services in Singapore, strengthen consumer protection and promote confidence in the use of e-payments. https://t.co/FTrKjZswm9
— MAS (@MAS_sg) January 28, 2020
Will the desert city become a crypto paradise?
Thanks to the regulations introduced today, Singapore is at the top of cryptocurrency-friendly countries. Asia is strongly divided about this topic – from a total trade ban in China to Japan, which launched a cryptocurrency payment system in over 10,000 stores last year.
In the Land of the Rising Sun, 22 cryptocurrency licenses have been issued in the last 3 years – that is since the regulations were introduced there. There is a high probability that Singapore will become equally popular – especially after the introduction of the 5th AML directive in Europe, which significantly limits the freedom of cryptocurrencies and companies based on them.