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Singapore is set to revolutionize its approach to digital finance by expanding the Payment Services Act to include token custody and a broader spectrum of financial transactions. This development, effective from April 4, 2024, as announced by the Monetary Authority of Singapore (MAS), is geared towards establishing Singapore as a leading hub for digital assets. The amendments aim to bolster investor protection and maintain financial stability by introducing rigorous requirements for digital payment token (DPT) service providers.
With an eye on competing with global financial centers like Hong Kong and Dubai, Singapore’s updated regulations mandate closer oversight of firms involved in the exchange and transfer of digital tokens. Entities affected by the new regulations must promptly comply by notifying MAS within 30 days and submitting a licensing application within six months. The move underscores Singapore’s commitment to fostering innovation in the digital asset space while ensuring stringent safeguards against money laundering and terrorism financing, marking a significant step in its regulatory evolution.
