Singapore Refines Crypto Regulations, Promotes Position as Asia’s Leading Digital Asset Hub

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Hello ph members takoana here. Singapore's status as a major cryptocurrency hub is being cemented by the Monetary Authority's comprehensive regulatory strategy. The city-state has developed into a hub for cryptocurrency operators seeking to grow in Asia, with more than 200 regulated payment institutions (MPIs) and an increasing number of digital payment token (DPT) service apps. Major exchanges including OKEx, Upbit, Anchorage, and BitGo have received licenses from MAS, which has insisted on strict regulations to safeguard the market and foster expansion.

In an interview with the Business Times on December 28, Chia Der Jiun, managing director of MAS, described the strict licensing procedure under the Payment Services Act (PS Act) and the elements taken into account during the evaluation.

"Under the Payment Services Act 2019 (PS Act), MAS adopts an activity-based licensing framework for payment services, including digital payment token (DPT) services," he continued. Since January 2020, the regulatory framework has undergone major expansion. Chia went on to explain: "The regulatory framework seeks to provide suitable risk-reduction guidelines for the particular payment service while providing room for expansion and creativity. The number of licensed MPIs in Singapore has increased to more than 200 since the PS Act went into effect in January 2020.

Following market volatility in 2021 and the failure of multiple enterprises during the crypto winter of 2022, regulations were changed to accommodate the shifting risk landscape in the cryptocurrency sector. According to Chia, MAS proactively modified its rules to safeguard investors and fortify the ecosystem.

The PS Act's regulatory standards and scope of regulated operations were broadened in April of this year to address new dangers in this quickly changing industry. More than 250 applications for DPT services have been submitted to MAS thus far, with over 30 of those applications coming after the scope was broadened in April.