Singapore’s Crypto Business Law
With the new legislation that was approved by the parliament of Singapore, cryptocurrency and digital asset providers that operate their business overseas (yet are based in the city-state) will now be obliged to attain a license. Up until now, such companies did not face anti-money laundering regulations.
Singapore’s decision comes from a recent regulatory attempt to prevent cryptocurrency businesses from promoting their facilities to citizens which is believed to undermine the country’s wary perspective on the crypto industry and encourage high-risk operations.
The city-state is working on regulating the new blockchain technology and is building an efficient structure for services and for the public to operate in the new realm of cryptocurrencies. At the same time, the government is being strict about what key players are allowed in the sector. For instance, Binance had to pull back its application in December of last year due to the new regulations disrupting both its strategic and commercial goals.
The Financial Services and Markets Bill also states that the Monetary Authority of Singapore is now allowed to ban those unsuitable for performing operations in the financial sector, as well as impose a higher fine of $737,050 on financial establishments that will encounter cyber attacks and service disruptions.
Despite the new stricter law on digital assets, Singapore’s government does not intend to ban cryptocurrencies.