January 4th local time, the Singapore Parliament passed the Payment Services (Amendment) Act, giving the Financial Authority greater powers to strengthen the control of digital payment token suppliers and related activities in many aspects.
Digital payment tokens refer to cryptocurrencies such as Bitcoin, which are not issued through legal tender issuers, but can be used to pay for transactions.
Cross-border transactions using virtual assets such as digital payment tokens are generally carried out in a fast and anonymous manner.
The Monetary Authority of Singapore will strengthen the supervision of suppliers and related transactions, including requiring suppliers to apply for licenses to reduce the risk that such transactions will be used for money laundering or the financing of terrorist activities.
After the implementation of the bill, the definition and supervision of digital payment token services have been expanded first.
Suppliers who transfer tokens, provide token custody services, and promote token exchange services without contact with tokens must now apply for operating licenses and comply with the regulations set by the HKMA.
In addition, the HKMA can impose on suppliers to take measures to protect customers, including separating the company from the assets of customers. In the event of corporate bankruptcy, this measure can ensure that the customer’s assets will not be lost.
In case of specific circumstances, the HKMA can also take additional measures against specific suppliers, including maintaining the stability of Singapore’s financial system, maintaining the effectiveness of financial policies or in the public interest.