Singapore Launches Cryptocurrency Payment Service Act

Start issuing qualifications such as upbeat-bithumb

As Singapore entered into force on cryptocurrency on 28th, upbeat and bithumb, which are operating in Singapore, will acquire licenses.

According to Bloomberg on the 28th (local time), Singapore authorities entered into force the Payment Services Act (PSA), a cryptocurrency regulation law.

The regulatory law applies to all companies that provide cryptocurrency services and requires a license.

The Singapore Monetary Authority (MAS) has PSA oversight and licenses to domestic companies as well as foreign companies.

The purpose of this PSA is to resolve system opacity rather than strict standards for related companies.

It is a willingness to present guidelines and support the industry.

Related companies must complete a license application within six months.

"The PSA will provide a forward-looking and flexible regulatory framework," said Rushui, MAS. "We will promote growth and innovation while increasing confidence in the risk mitigation and settlement environment."

Foreign companies doing business in Singapore have also responded positively to the implementation of the PSA.

Nisam Ismail, chief executive of consulting firm Eticom Consultancy, said, "It provides clear regulatory guidelines for new types of payment activities, such as crypto-related businesses in Singapore."

The introduction of PSA is the most appropriate system since the announcement of the cryptocurrency guidelines of the International Anti-Money Laundering Organization (FATF).

Singapore has embraced proactive measures and new initiatives at the government level so that it has been called the leader of the cryptocurrency industry.

The FATF set guidelines last June and recommended the application of member countries.

The key is that the government registers and manages cryptocurrency handling companies directly.

At present, the amendment to the Special Allowances Act contains the contents, but the amendment is pending in the National Assembly.

Doowoom, which operates Upbit, a major domestic cryptocurrency exchange, established `` Upbit Singapore '' in Singapore in 2018.

Last year, Kakao's cryptocurrency clay was listed on Upbit Singapore to attract investors' attention.

Dooam is currently working hard to establish AML (Anti-Money Laundering) and KYC (Customer Identity Authentication) in order to preemptively prepare for the passage of the Special Bill Act.

Since the end of last year, it has been operating a new customer verification process for withdrawing foreign customers.

In December last year, the company completed registration of Upbit Indonesia's cryptocurrency exchange business, and began to acquire licenses in Malaysia and Thailand, establishing a solid global business base in Southeast Asia.

Bithumb also operates 'Bitsome Singapore' in Singapore, and its subsidiary, Naver Line, is running 'Bitbox'.