Several crypto companies have been granted a license exemption in Singapore for a limited period. These include the Singaporean entities of Ripple, Coinbase, Binance, Gemini and others.
27 March, 2020 | AtoZ Markets – Singapore has recently adopted specific crypto legislation (Payment Services Act) in January 2020. The Monetary Authority of Singapore (MAS) believes that cryptocurrencies involve significant risks of money laundering due to the anonymous and borderless nature transactions. Therefore, all crypto companies will need to have a license to operate in the country.
Ripple, Coinbase Get Crypto License Exemption in Singapore
It turns out that some crypto companies like Ripple, Coinbase and Binance have been exempt from the law since the start of the year. MAS stated that Ripple Labs Singapore, Coinbase Singapore, Binance Asia Services and others could provide specific payment services under exemptions.
These three companies can provide digital payment token services until July 28, 2020. The exemption will end after that date, as they will all have to submit a licensing application for their services by then. Some crypto companies have obtained a longer exemption period. BitGo Singapore and Gemini Trust Company have obtained an exemption from 12 months.
BitGo Singapore is a local subsidiary of one of the world's largest Bitcoin payment processors (BTC). Gemini Trust Company is a crypto exchange and custody service led by the Winklevoss twins. However, both companies may also provide an account issuance service, a domestic money transfer service and an incoming cross-border money transfer service until January 28, 2021.
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"Please note that these entities are not authorized by PSA (Payment Services Act) to provide specific payment services. But they are authorized to continue to provide specific payment services," said the regulator. MAS also noted that the exemption will cease after the specified period or if the entity submits a license application under the PSA.
Other crypto companies in the list include the entities of LedgerX, OKCoin, DRW, Cumberland, GSR and Pundi X of Singapore, among others. David Ben Kay, chief legal officer of Pundi X Labs, said:
"In compliance with the PSA, we will be filing our license application to operate account issuance and digital payment token services by July 28, 2020 ".
MAS Enforces New AML Crypto Regulations
Singapore's Payment Services Law came into force on January 28. It requires that all crypto companies operating in the country registered and licensed. The law covers "digital payment token (DPT) services", in fact, all crypto companies and exchanges in the country. MSA said all crypto companies would have to comply with the AML and CFT requirements. Loo Siew Yee, assistant managing director of MAS, also said:
The Payment Services Act will facilitate growth and innovation by mitigating risk and fostering confidence in our payments landscape.
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