Singapore tightens rules for virtual payment service providers offering crypto

The expanded rules and regulations could help reduce the risk of DPT service providers being used by criminals “to launder illicit proceeds or to hide illegal assets,” said Minister for Transport Ong Ye Kung, who is a board member of the Monetary Authority of Singapore (MAS).

The new measures will also allow the central bank to widen its authority to regulate cryptocurrency exchanges even when service providers don’t possess the money or tokens involved.

The amendment could also require a cryptocurrency service provider to segregate customer assets from its own assets, enabling consumer protection in the event of insolvency, the report noted.

“The bill will broaden the definition of cross-border money transfer service to include facilitating transfers of money between persons in different jurisdictions, where money is not accepted or received by the service provider in Singapore,” Ong said in parliament. “That way, such service providers will come under the regulatory ambit of MAS even if the moneys do not flow through Singapore.”

The move comes after Bitcoin, the world’s largest cryptocurrency, extended its record rally on Saturday after hitting US$34,000 for the first time.