Singapore updates the regulatory framework; Payment Services Act now in effect
The latest law mandates the implementation of a licensing regime

On Tuesday, the MAS (Monetary Authority of Singapore) announced the commencement of the city-state’s new Payment Services Act (PS Act). The latest PS Act designed to strengthen consumer protection and ensuring confidence in the use of e-payments.

In addition, the new act mandates the implementation of a licensing regime for platforms that are dealing with cryptocurrencies. This is to ensure that operators meet anti-money laundering and counter-terrorism (AML/CFT) regulations. All firms need to register with MAS by 28 Jan, stating they are based in Singapore and are operating a DPT (Digital Payment Token) business.

In a statement, Assistant Managing Director of MAS, Loo Siew, told, “The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry. The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models”.

As per the reports, the MAS will issue three types of licenses; Money-Changing Licensees (*Mainly for small businesses offering Oner-The-Counter services with limited risks), Standard Payment Institutions and Major payment institutions. The criteria for obtaining the license would depend on the risks associated with the scope and scale of the services.

Ms. Loo Siew Yee believes that the new law will not just provide more confidence in the payment system but promote growth as well.