The Singapore Parliament has enacted the Financial Services and Markets Bill, which will compel all domestic crypto service providers to seek a license if they have been operating outside. The law mandates that any city-state crypto firms operating in other countries abide by tougher regulations, including getting a license to comply with anti-money laundering and counter-terrorism regulations.
According to Bloomberg, a new bill passed by the Singapore Parliament on Tuesday aims to govern virtual asset providers based in the city-state that operate internationally. At the moment, such businesses are not subject to any regulatory oversight in terms of anti-money laundering or anti-terrorism procedures.
Singapore’s new regulation comes as the government tightens its stance on crypto advertising, which includes prohibiting crypto businesses from publically advertising their services.
Singapore has been working on developing a regulatory structure to conduct crypto transactions in an organized manner, and it appears that the country is ready to embrace cryptocurrency and blockchain technology while actively promoting its adoption rather than outright prohibiting it, as China has done.
Furthermore, the bill recognizes the Monetary Authority of Singapore’s (MAS) authority and states that the MAS has complete authority to prevent people deemed unfit from undertaking critical jobs, activities, or functions in the financial industry. Individuals that perform payment services and risk management will now be included in this category.
In addition, the Bill sets a maximum penalty of $1 million on financial institutions if their services are impeded or disrupted, or if cyber assaults occur.