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With the new rules for cryptocurrency regulation, it is becoming visible that Southeast Asia is concerned about AML / CFT rules compliance and the safety of transactions. Focusing more intensively on KYC and due diligence, the countries’ regulators from the Southeast Asian region are working on providing more complete and trustworthy regulations. In this article, we introduce a short special report about the new approach that the countries in Southeast Asia are taking in relation to the crypto activities’ regulation. Especially, this review will be useful for individuals who plan to start a cryptocurrency company or currency exchange in one of these countries.
After the new Payment Services Act had been issued, providers of digital token exchange are required to be registered as a payment institution in Singapore. AML and CFT rules are applicable to all these authorized companies. By committing to these rules, companies confirm that they are responsible for addressing the risks of violating the rules.
The new Act has helped the regulation system become more comprehensive because it divides digital assets into two categories. According to the new regulation, investment tokens belong to the group called digital payment token.
The regulation applies to all providers of payment token transfer services. More specifically – to the services that receive tokens from one digital account or address in Singapore or in a foreign country and transfer them to another address or account within Singapore.
Any registered financial company for a cryptocurrency exchange or other similar activities in Singapore needs to obtain a license of a financial institution.
The breaking news from Malaysia that everyone is talking about: the initial offer coins (ICOs) are now defined illegal. It was stated by the Malaysian Securities Commission that in order to regulate the digital tokens in the best way, they are now considered Initial Exchange Offerings (IEOs).
This new approach means that every digital offer from before is supposed to undergo the changes to be transformed to IEO. This decision is justified by the regulator to bring more transparency and control to the market.
It became possible to work with an ICO in Thailand at the end of the last year after it was allowed by the local regulator. In order to lower the risks for the investors, the digital assets business rules are evolving actively.
COREDO is ready to give you a professional consultation on more details about the regulation of the crypto business in Southeast Asia.