The primary objective behind the Payment Services Act is to counter money laundering and terrorism financing.

The Act also regulates money transfer services across borders.

MAS can introduce user protection measures on digital payment platforms and other miscellaneous charges. However, do the changes affect you?

You can learn about the proposed changes here.

 

 

How does it affect you?

The new PS Act changes the dynamics of the digital asset scene in Singapore.

It arises from the expanded scope of regulation of Digital Payments Token (DPT) service providers.

Here are some of the areas which may concern you –

Blockchain mining –

The PS Act changes mean tracking activities like transmitting payment tokens from one address to another is possible.

It questions the licensing of blockchain mining or software development as these services use the transmission of DPTs.

MAS stated that you do not need a license unless running a business that involves the arrangement and passing DPTs.

 

DPT Custody Service Providers –

Services that administer DPTs for customers need to comply with the new PS Act. Hence, you are likely to require a license soon as well.

You can access or control DPT transactions with a DPT instrument like a cryptographic key.

It does not matter whether you hold an exclusive device. If you have control over it, you need a license.

Check with the licensing framework defined in the Securities and Futures Act (SFA) to clarify digital tokens on your services.

 

Marketing and advertising –

The changes in the new Act will come after services that compel other persons to engage in the purchase or sale of DPTs.

They will need licenses and clarification from the MAS.

It predominantly affects the marketing and advertising of digital tokens and token issuances.

 

You can fill-up the form on our website and get in touch with experts to learn more. You can also read more about it here.

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