More than 100 firms that utilized for a license to supply crypto providers in Singapore have both been turned down or withdrawn their purposes. “Cryptocurrencies could be abused for money laundering, terrorism financing, or proliferation financing due to the speed and cross-border nature of the transactions,” stated the nation’s central financial institution, the Monetary Authority of Singapore (MAS).
Tough Crypto Regulation in Singapore
Since Singapore started regulating the crypto sector earlier this 12 months, about 170 firms have utilized for a license to supply “digital payment token services,” which embrace crypto-related providers.
However, greater than 100 firms that utilized for a license have both been turned down or withdrawn their purposes, Nikkei Asia reported Monday.
Companies that have been working in the nation prior to the introduction of the licensing regime have been granted exemptions till their license purposes have been processed. Senior Minister Tharman Shanmugaratnam instructed parliament in July that 90 firms have been working underneath such exemptions.
A spokesperson for the Monetary Authority of Singapore (MAS), the nation’s central financial institution and regulator of the crypto sector, instructed the information outlet: “Cryptocurrencies could be abused for money laundering, terrorism financing, or proliferation financing due to the speed and cross-border nature of the transactions.” The spokesperson elaborated:
Digital fee token service suppliers in Singapore … have to adjust to necessities to mitigate such dangers, together with the necessity to perform correct buyer due diligence, conduct common account critiques, and monitor and report suspicious transactions.
So far, solely three firms are listed as licensed entities on the MAS web site: DBS Vickers Securities, a unit of DBS Group Holdings, Southeast Asia’s largest financial institution; digital funds startup FOMO Pay; and Australia’s Independent Reserve. The MAS stated in (*100*) that Singapore strives to turn out to be a worldwide crypto hub.
DBS’s head of capital markets and the chairperson of the financial institution’s crypto change stated in September: “We are growing very rapidly. Investors are gradually exploring cryptocurrencies and digital assets.”
In September, the central financial institution ordered Binance to cease offering crypto providers to residents. Last week, Binance introduced that its Singapore platform will likely be shutting down.
Binance CEO Changpeng Zhao (CZ) claimed that the explanation behind the closure of its Singaporean change was due to an 18% stake in Hg Exchange (HGX), a regulated securities change in Singapore. However, Bloomberg reported that the true cause was as a result of Binance couldn’t meet the necessities for a license to function a crypto change.
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