Singapore May Extend Crypto Regulation to Include Overseas Activities

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Singapore May Extend Crypto Regulation to Include Overseas Activities

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The Monetary Authority of Singapore (MAS) is seeking to extend its oversight to include cryptocurrency activities outside of its jurisdiction.

  • proposal from the city-state’s central bank would effectively extend the provisions set by the 2019 Payment Services Act (PSA) to include the overseas activities of locally based crypto companies or individuals.
  • That means virtual asset service providers (VASPs) will be obliged to run their overseas activities to the same regulatory standards as their Singapore operations.
  • Per the consultation paper, MAS argues the proposal would stop regulatory arbitrage – in which multinational VASPs cherry-pick the regulation that best suits their businesses.
  • This would also align Singapore closer to the anti-money laundering recommendations set last year by the Financial Action Task Force (FATF) – an international watchdog.
  • VASPs affected will be those that work overseas but have a “meaningful presence” in Singapore – that is, if their offices and directors are based in the jurisdiction.
  • Further, a company representative would have to be present and answerable to the Singapore regulator at all times.
  • MAS originally floated the idea of extending PSA soon after it was ratified in December 2019.
  • A public consultation period is open until Aug. 20, 2020.

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Author: Refer to Source Paddy Baker

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