Stricter regulation of cryptocurrency providers in Singapore has been approved by the country’s parliament, according to reports.
Even if companies exclusively do business abroad, Singapore-based virtual asset service providers (VASPs) are required to get a license.
Anti-money laundering (AML) and counter-terrorism financing (CTF) standards now apply to these organizations (CFT).
There are currently no anti-money laundering or counter-terrorism funding regulations for Singapore’s crypto firms, so this action aims to strengthen laws for such companies.
Regulations on companies providing Digital Token services
All companies that provide digital token (DT) services in Singapore, regardless of where they are located, are subject to Singapore’s existing regulations.
However, AML/CFT regulations presently do not apply to DT service providers that are established in Singapore but do not perform any DT services in Singapore. “
This measure is designed to protect the island’s image as a financial center as more crypto-related enterprises locate on its shores.
For the first time ever, AML/CFT standards placed on digital payment token service providers are aligned with those imposed on digital token (DT) service providers.
The Monetary Authority of Singapore (MAS) gains additional control over the virtual asset market as a result.
Despite inviting Web 3 startups, Singapore has issued restrictions to ban crypto marketing in public and media places.
Penalities announced by Singapore
The new regulations include the provisions of the Finance and Markets Act. One million (737,050) will be added to the maximum penalty for financial institutions that suffer cyberattacks or have their services interrupted.
With the passage of this law, the Monetary Authority of Singapore would have more authority to bar people judged unsuitable from holding high-level positions in the financial sector. Payment service providers and risk managers are now included in this group.
Singapore on NFTs
Singapore has adopted a non-technical approach to NFTs. As previously reported, Finance Minister Lawrence Wong said that money received from NFT transactions or trading in it would be subject to the current income tax laws.
NFT transactions that result in capital gains will not be taxed since Singapore does not have a capital tax framework.