Singapore Tightens Rules and seeks Greater Control over Crypto Companies

Key Takeaways:

  • Singapore’s crypto service providers are regulated by the Monetary Authority of Singapore (MAS).
  • The new law allows the regulator to look at providers exclusively serving offshore markets. 
  • Singapore tightens rules and seeks greater control over crypto companies
  • This could also set a precedent for other countries to tax crypto firms that are based within their borders and earn profits overseas.

In Singapore, Cryptocurrency service providers are regulated by the Monetary Authority of Singapore (MAS). A new rule, however, broadens the regulator’s authority and allows it to probe service providers who only serve foreign markets. 

It may also set a precedent for other countries to tax cryptocurrency businesses based within their boundaries but deriving revenue outside of their borders.

“We could be exposed to reputational risks brought by digital token service providers created in Singapore, and which provide services relating to virtual assets such as Bitcoin outside Singapore. The FSM Bill seeks to mitigate such risks by licensing these players and imposing AML/CFT requirements on them. “, Alive Tan, a board member at the MAS, said.

The Monetary Authority of Singapore (MAS) has stated that cryptocurrency trading is extremely dangerous and not suited for the general population. This might be beneficial to Dubai, which has been preparing to become a refuge for blockchain, web3, and cryptocurrency enterprises.

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Baisakhi Mishra