- MAS announces amendments to PS Act, broadening regulation to include custodial services, DPT transmission, and cross-border transfers.
- Amendments to PS Act enforce AML, user protection, and financial stability measures on DPT service providers, enhancing oversight.
The Monetary Authority of Singapore (MAS) today announced amendments to the Payment Services Act (PS Act) and its subsidiary legislation. The changes aim to broaden the range of payment services under MAS regulation and enforce user protection and financial stability measures on digital payment token (DPT) service providers. These amendments will be implemented gradually starting from April 4, 2024.
The proposed amendments aim to broaden the regulatory scope under the PS Act to include various activities. These include providing custodial services for DPTs, facilitating the transmission of DPTs between accounts, and enabling the exchange of DPTs, even when the service provider does not physically hold the funds or DPTs.
Additionally, the amendments seek to regulate the facilitation of cross-border money transfers between different countries, even if funds are not accepted or received in Singapore. This expansion reflects efforts to enhance oversight and regulation within the digital payment token space.
“The amendments will empower MAS to impose requirements relating to anti-money laundering and countering the financing of terrorism, user protection and financial stability on DPT service providers,” said MAS.
Moreover, entities currently engaged in activities under the expanded scope of the PS Act will receive transitional arrangements. They must inform MAS within 30 days and submit a license application within six months from April 4, 2024, to continue activities temporarily while MAS evaluates their applications.
Angela Ang, a former MAS regulator and senior policy advisor at blockchain intelligence firm TRM Labs, told The Block that this expansion was initiated in 2021 and offers long-awaited regulatory clarity to crypto custody players in Singapore.
Edited by Harshajit Sarmah
