Singapore introduces licenses for cryptos like Bitcoin

More safety for consumers, more effort for service providers

The next country has decided to change the uncertain conditions for investors who buy and trade tokens like Bitcoin. Since yesterday, Singapore has made licensing mandatory for companies that want to offer crypto services. The new legal situation is the result of the longer-term plans of the “Payment Services Act”, which in turn was drafted by the state central bank. Said Monetary Authority of Singapore (MAS) introduces the mandatory application for a crypto license not only for domestic companies, but also for service providers from abroad. The 28.01.2020 is therefore an important deadline for various groups.

 

Singapore follows numerous other countries worldwide

On the one hand, consumer protection in the country is to be improved by the corrected legal orientation. For companies offering services based on the block chain – from crypto trade to custody in wallets – this in turn means higher barriers to entry into the country’s market. The introduction of the PS Act will therefore have serious consequences. In addition to licensing, the Act also requires registration with the MAS. With the addition of stricter and more transparent regulation, Singapore is ultimately following an international trend. Not only Germany is working on a sustainable solution for the future with its block chain strategy. The responsible regulatory authority now has the proverbial last word on all services from direct purchase of digital currencies such as Dash or Monero to derivatives trading.

 

Different industries apply for different licenses

The supervisory authority itself speaks of a “more robust and far-reaching regulation” than before in connection with the introduction of the revised legislation. Overall, the authority is introducing three different licence classes, each of which relates to different services. In addition to a “standard licence”, there is a licence for large crypto service providers and a licence for currency exchange in connection with crypto currencies such as Ethereum or, of course, Bitcoin. The country wants to be able to react flexibly to the needs and in particular the risks of the market through this structure. Payments, exchange, trade and development of new tokens fall under the new legal situation. The fight against money laundering and the financing of international terrorism is also at the heart of the drafting.