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Singapore Expands Crypto Regulations
Singapore has taken significant steps to expand its crypto regulations, focusing on custody of tokens and firms involved in fund transfers. The Monetary Authority of Singapore (MAS) announced these changes as part of its efforts to establish the city-state as an institutional hub for the cryptocurrency industry.
Changes to Payment Services Act
The amendments to the Payment Services Act will be rolled out gradually, starting from April 4. The MAS aims to enforce “user protection and financial stability-related requirements” through these changes.
Regulation for User Protection
Singaporean officials have signed plans to regulate custody services and other crypto-related transfer services in response to the risks associated with unregulated cryptocurrency speculation in 2022. The country aims to encourage the productive use of blockchain technology while curbing excessive speculation by retail investors.
Key Regulatory Amendments
Under the revised rules, service providers facilitating token transmission or exchange will be subject to regulation, irrespective of physically possessing the money or coins. Companies enabling cross-border transfers will also fall under the act’s ambit, regardless of fund acceptance or receipt within Singapore.
Anti-Money Laundering Measures
The MAS highlighted that these measures will allow for the imposition of requirements related to anti-money laundering and countering the financing of terrorism, providing clarity to key aspects of the crypto ecosystem.
Competition Among Jurisdictions
Singapore is competing with other jurisdictions like Hong Kong and Dubai to attract digital asset businesses. These regulatory frameworks aim to foster innovation while ensuring investor protection, considering the cryptocurrency industry’s history.
Spot Bitcoin ETFs Boost Crypto Adoption in Singapore
Singaporeans are increasingly viewing Bitcoin favorably following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. A recent report from the digital currency exchange Independent Reserve revealed that 39% of Singaporeans now have a more positive view of Bitcoin.
Growing Crypto Investor Base
The study also showed that Singaporean cryptocurrency investors are becoming more experienced, with over half (52%) being in the market for over three years. Their portfolios are diversifying, with 16% now holding six or more different cryptocurrencies.
Profitability and Investment Trends
This year, 64% of crypto owners reported making profits, a significant increase from previous years, while only 10% experienced losses. A separate report by Seedly and Coinbase found that 57% of respondents currently hold digital assets, with investments ranging from US$1,000 to $25,000.