On Tuesday, the Singapore Parliament enacted the Financial Services and Markets Bill, which requires virtual asset services providers doing business internationally to be regulated. The Monetary Authority of Singapore (MAS) will oversee virtual asset services businesses established in Singapore but not providing services in the nation under the new legislation. Digital payment tokens, cryptocurrencies, and digital representations of capital markets items are all considered virtual assets under the law.
The Monetary Authority of Singapore (MAS) will supervise virtual asset service providers
According to Bloomberg, Singapore’s Parliament has enacted the Financial Services and Markets Bill, which would empower the Monetary Authority of Singapore to oversee virtual asset services providers and financial institutions in the nation.
The Monetary Authority of Singapore now governs businesses that provide virtual asset services in Singapore (MAS). On the other hand, the legislation would guarantee the prevention of anti-money laundering and terrorist funding by regulating Singapore-based virtual asset providers that conduct business internationally.
“Virtual asset service providers created in Singapore that provide services only elsewhere are unregulated for anti-money laundering and countering the financing of terrorism (AML/CFT), which creates reputational risks for the Republic,” stated MAS board member Alvin Tan.
Singapore has welcomed digital currencies and blockchain technology as technical advancements. Furthermore, whereas some nations have advocated a complete ban on cryptocurrencies, NFTs, and other virtual assets, the nation has developed regulatory regimes for them.
Furthermore, the bill grants the Singapore Monetary Authority broader financial regulatory authorities, including the ability to ban persons who fail to execute critical tasks, activities, or functions in the financial sector. Financial firms that suffer a significant cyberattack or cannot provide key financial services may face sanctions.
Singapore is a pioneer in the adoption of virtual assets and cryptocurrency. However, when it comes to governing and managing virtual asset companies, the nation has taken a careful approach. The financial authorities came out against crypto firms promoting their services to protect investors from the hazards of trading and purchasing cryptocurrency.