The Monetary Authority of Singapore (MAS) has proposed to expand the scope of the Payment Services Act 2019 (PS Act) to cover additional digital payment token (DPT) services and money transfer services. MAS’s proposals, set out in a December 2019 consultation paper, are largely driven by enhanced standards adopted by the Financial Action Task Force, a global standard-setting organisation focused on anti-money laundering and countering the financing of terrorism (AML/CFT). If adopted, MAS’s proposals would extend the payment services licensing and AML/CFT regime to companies providing the affected DPT and money transfer services.
MAS proposes to regulate the following services under the PS Act:
MAS also proposes the following amendments to the PS Act:
It should be noted that MAS is not proposing specific user protection measures or subsidiary legislation in this consultation; it is proposing new authorities in this consultation and will propose specific user protection measures and subsidiary legislation in future consultations.
MAS also intends to introduce a new class of financial institutions that are created in Singapore and provide virtual asset services outside of Singapore. MAS will consult on this topic in the future.
The submission for comments on the proposed amendments will close on 28 January 2020.
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Disclaimer: This article is for general information only and does not constitute legal advice.