Local authorities brought new regulations for cryptocurrencies into force in Singapore recently. Giant exchange Binance and two others are now aiming to get a Singapore crypto license.
The New Singapore Law
The Payment Services Act 2019 controls cryptocurrency use in Singapore. The Monetary Authority of Singapore brought this into force at the end of January 2020. The act regulates cryptocurrency trading and digital payments on the island-state.
This new law has introduced three types of Singapore crypto license. These start with the standard payment institution license. The others are a money-changing license and a major payment institution license.
This is a forward-looking and flexible regulatory framework, according to Loo Siew Lee. She is the Assistant Managing Director of the Monetary Authority of Singapore.
Any firm looking to deal in cryptocurrencies in Singapore will need to comply with other regulations too. These include the Financial Advisers Act and the Trust Companies Act.
The Exchanges Looking to Get Involved
Bloomberg suggests in a report that three exchanges are among the first to make their move here. Binance is among them. This company is one of the world’s most important players.
The other two exchanges looking for a license are Liquid and Luno. Liquid is based in Japan and Luno has its headquarters in London. Mike Kayamori is the CEO of Liquid. He said that they welcome the new bill “with open arms”.
iSTOX has already earned the first two licenses in Singapore. This stock tokenisation platform is expected to have their operations up and running before long.
More About Binance
Binance is one of the biggest and most important crypto exchanges on the planet. They are based in Malta but they also have offices spread across Asia.
Changpeng Zhao is the Binance CEO. He recently spoke about the Singapore crypto license process. Zhao said that they submitted their application “pretty fast”. He also said that the regulators in Singapore “have always been open-minded”.
The Future of Cryptocurrencies is Being Defined
These new regulations are part of a growing trend across the planet. While some countries have banned digital money, others are putting in place the framework to deal with it.
The future of cryptocurrencies is being defined right now. We can see this with the licenses handed out in Japan. There is also the possibility of a digital Rupee. For investors and users, there is a lot going on just now.
The awarding of Singapore crypto licenses will help to ensure that more people can trade cryptocurrencies. Above all, they can do it safely and with confidence.