Singapore has expanded the scope of what cryptocurrency-related activities it regulates to include custodial services.
The Monetary Authority of Singapore (MAS) has announced that it will now regulate the transmission of cryptocurrencies between accounts and exchanges, regardless of the amount.
This is the latest in a series of crypto regulations being undertaken in Singapore following the collapse of the FTX exchange and other high-profile issues that have impacted digital assets.
The new rules regarding custodial services apply to all cryptocurrency service providers operating in Singapore and are meant to safeguard investors.
The regulations include “…maintaining proper books and records and ensuring that effective systems and controls are in place,” and goes into effect within six months from April 4, 2024.
Any firm conducting crypto-related activities in Singapore now needs to submit a license application within six months from April 4 to continue operating in the city state.
The license application includes an attestation that the crypto organization is not involved in money laundering or financing terrorism.
Firms that fail to comply with the new rules will be forced to cease all activities in Singapore, said the markets regulator.
