Singapore was among the first jurisdictions where the regulation of cryptocurrencies was adopted at the state level. In general, this country is considered favorable for the activities of cryptocurrency exchanges and crypto start-ups.
Cryptocurrency companies are regulated by the Monetary Authority of Singapore (MAS). The main documents regulating the crypto sphere in the country are the Securities and Futures Act (SAF) of 2001 and the Payment Service Act 2019, which came into force at the beginning of 2020. The last one introduces the concept of a “digital payment token” (DPT) and those who want to provide any related services must obtain a license of a payment institution (Small Payment Institution or Major Payment Institution). It is important to note that a cryptocurrencies exchange license is required only for crypto exchanges that are going to act as intermediaries in trading operations with tokens that are subject to securities legislation.
MAS pays much attention to decentralized finance and takes an active position regarding the regulation of the crypto industry in Singapore. In 2022, several recommendations and consultation papers were issued to mitigate the risk of money laundering and terrorist financing through digital assets. Further changes to the regulatory framework are expected throughout 2023.
The Singapore Cryptocurrency and Blockchain Industry Association (CBIA) actively supports small and medium-sized businesses in this industry.
