The Singapore Monetary Authority has given a temporary exemption to several cryptocurrency firms operating in the country under the new Payments Services Act. The crypto firms that would benefit from this move include Binance, Coinbase, Gemini, Bitstamp, Luno, Upbit, and Wirex.
The central bank of Singapore, the Monetary Authority of Singapore (MAS) earlier this week published a list of cryptocurrency firms that have been excluded from holding an operating license under the Payments Payment Services Act (PS Act) 2019; for the six months grace period. This new act that regulates the cryptocurrency services industry, went into effect earlier this year.
The official MAS document notes that organizations that were in the payment services market before the enactment of the PS Act and did not inform MAS after the passage of the Act would be found in violation of the Exemption Regulations. Consequently, they are not allowed to undertake crypto-related operations as they are no longer licensed
“These entities are not licensed under the PS Act to provide the specific payment services, but are allowed to continue to provide the specific payment services.”
The Payment Services Act categorizes
The Payment Services Act categorizes six categories of “specific payment services” These are account issuance service, domestic money transfer service, inward cross-border money transfer service, merchant acquisition service, e-money issuance service “where the e-money issuer’s total float doesn’t surpass $30,” and “digital payment token service.”Crypto-currency services come into the umbrella of digital payment token services.
Firms that provide digital token payment services are excluded from holding a license for a period of six months since the enactment of the act. According to MAS, this period will come to a close on July 28 since the Act was activated on January 28. However, firms that offer different services can progress with their business for up to 12 months without a license. As per the law, this period should draw to a close on January 28, 2021.
Firms to benefit from temporary licensing exemption include
Cryptocurrency firms including Coinbase, Binance Asia, Bitstamp, Bitcross, Bitcoin Exchange, Zipmex, Coincola, Ripple Labs, Quoine, Luno, Upbit and Payward are among the firms that should abide with the new Payments Services Act before July 28. Other digital currency firms that provide other services on top of crypto-related services such as Gemini Trust, BitGo Singapore, Wirex, LedgerX and Paxos Global. The entire compilation is here. According to MAS:
“The exemption will cease after the specified period; or if the entity submits a license application under the PS Act; on the date that the application is approved or rejected by MAS, or withdrawn by the applicant.”
The cryptocurrency firms’ licensing framework in Singapore is progressing. The country is a massive advocate of digital currencies and their daily use to settle financial needs. Singapore’s demand is for the industry participants to observe the strict anti-money laundering regulations in the PSA. This act provides the relevant protection to both the investors and the companies involved.