Singapore passed a law on Tuesday that will require local digital asset service providers who do business exclusively overseas to be licensed, Bloomberg reported.
Currently, Singapore’s crypto entities are not regulated for anti-money laundering and the financing of terrorism.
The new rule is part of the financial services and markets bill, which includes the imposition of a higher maximum penalty of S$1 million ($737,716) on financial institutions if they experience cyber attacks or their services are disrupted.
The bill will also allow the Monetary Authority of Singapore (MAS) to prohibit individuals who are deemed unfit to perform key roles, activities, and functions in the financial industry. These will now include individuals providing payment services and conducting risk management.
In January, MAS issued guidelines that limit cryptocurrency trading service providers from promoting their services to the general public in a bid to shield retail investors from potential risks.
See also: How a Singapore crypto startup became a unicorn in just 2 years
Editing by Collin Furtado
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