The city-passage state’s of the bill on Tuesday means that such businesses would be subject to anti-money laundering and anti-terrorism regulations, which they were not previously subject to.
According to Bloomberg, the Singapore parliament enacted a measure on Tuesday requiring licences for crypto firms based in the city-state but conducting business only in other countries.
At the moment, Singapore’s crypto businesses are not regulated for anti-money laundering and counter-terrorism financing purposes, and so the move aims to tighten regulations for cryptocurrency providers.
Singapore is treading a fine line between embracing Web 3 startups and implementing guidelines restricting cryptocurrency advertising in public spaces and media.
The new regulation is included in the Financial Services and Markets Act. This measure increases the maximum penalty for financial institutions to S$1 million ($737,050) in the event of cyberattacks or service disruptions.
The bill strengthens the Monetary Authority of Singapore’s authority to bar anyone considered unfit from performing critical financial industry roles, operations, and functions. These employees will now include those who provide payment services and manage risk.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.