Singapore’s new law, requiring cryptocurrency exchanges to register comes into force today. The Payment Services Act, which was first passed in January 2019 requires all cryptocurrency exchanges to be registered and licensed to operate in the country.
Some of the requirements include anti-money laundering (AML) and counter financing of terrorism (CFT). The Monetary Authority of Singapore (MAS) sees significant risks of money laundering due to the anonymous nature of cryptocurrencies. Therefore, all crypto businesses will have to be licensed to operate in the country.
However, the act does not impose uniform licensing requirements. There are three different types of licenses depending on the kind of services provided, a money-changing license, a standard payment institution, and a major payment institution. “Each service provider needs to hold only one of the three licenses,” states the act. Several exchanges, such as Zipmex, Liquid, and Luno are already working on acquiring the license.