Learn Concept: The Impact of Updated Regulations on Crypto Service Providers

By: Isha Das

The Monetary Authority of Singapore (MAS) has made significant amendments to its Payment Services Act (PSA), reflecting the nation's growing influence as a cryptocurrency-friendly hub. This change carries implications for crypto service providers operating in the region. The revised legislation draws interest from many crypto firms and includes three new digital payment token (DPT) services: custodial services, facilitation of crypto transfers, and cross-border money transfers.

Under the new regulations, DPT service providers must take extensive measures to safeguard customer assets and funds. These entail creating trust accounts, aligning with stringent Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) rules, and meeting strict user protection and financial stability prerequisites. The changes are expected to enhance investor protection and promote innovation in the crypto sector within Singaporean jurisdiction.