tokenist.com
The Monetary Authority of Singapore (MAS) published a notice earlier this week, asking companies offering crypto-related services to conduct more rigorous customer due diligence. Among other things, the financial watchdog requires more detailed information on accounts and transactions, e-money transfers, and high-risk customers.
MAS Demands Information on “High-Risk” Customers
MAS, Singapore’s central bank and financial regulator, issued a new notice on May 31, asking crypto firms to report more information about their operations, such as the total value of payment transactions, total number of customer accounts, number of “high-risk customers,” and more.
The move comes as the MAS moves on to tackle potential risks related to digital tokens and cryptocurrencies while also maintaining transparency and accountability within the industry. The notice, published on Wednesday, affects all crypto-related that have been granted exemptions to offer services in the city-state.
MAS’s document particularly focuses on the reporting requirements for data related to services these companies provide under the Exemption Regulations. It outlines many reporting requirements for crypto companies registered in Singapore, including information about the number of accounts and transactions, domestic transfers, high-risk users, and the total value of payments they made. In addition, the MAS also demands additional information about the companies’ cross-border money transfers, digital payment token services, and ‘e-money’ services.
Singapore’s Regulation of ‘E-Money’ and ‘Digital Payment Tokens’
While Singapore is considered one of the most crypto-friendly jurisdictions in the world, the Southeast Asian hub has adopted a more cautious approach to regulating the crypto industry following a series of high-profile collapses in 2022. For instance, in April, the MAS hinted at tightening stablecoin regulations after TerraUST’s implosion more than a year ago.
Meanwhile, the MAS treats cryptocurrencies differently based on their unique characteristics. Some crypto assets in Singapore are treated as capital market products like securities, while others are regulated as e-money or digital payment tokens (DPTs).
In short, the central bank defines e-money as “any electronically stored monetary value that is denominated in any currency, or pegged by its issuer to any currency.” On the other hand, a DPT is defined as “any digital representation of value that is expressed as a unit, is not denominated in any currency, and is not pegged by its issuer to any currency.” That said, if a crypto firm deals in DPTs or facilitates the exchange of these assets, it would be regulated as a DPT service provider.