Singapore has amended the Payment Services Act to Token Retention and Transfer.

The Monetary Authority of Singapore (MAS) has announced that it will implement amendments to the country's Payment Services Act (PS Act) to expand the scope of regulated services related to digital payment token (DPT) service providers.

On April 2, Singapore's central bank said it would bring a number of activities within the scope of the PS Act. This includes providing security services to DPTs, facilitating token transfers and exchanges, and facilitating cross-border money transfers.

The regulator also explained that the law covers cases where the service provider does not hold the money or the money is not received or received by Singapore.

MAS also said the new amendments would allow the central bank to include additional requirements for DPT service providers. MAS wrote:

“The amendments will enable MAS to enforce requirements relating to anti-money laundering and terrorist financing, consumer protection and financial stability on DPT service providers.”

The reforms will be implemented in phases from April 4. According to MAS, transitional arrangements will be made for entities affected by the expanded scope.

The regulator has urged these entities to notify the central bank within 30 days and issue licenses within six months after April 4.

M.S. He announced that illegal companies would be closed. “Parties that do not meet the above requirements will be required to stop their activities when the amendments are implemented,” he wrote.

Meanwhile, the regulator will include improvements related to the protection of customer assets of payment token service providers.

These cover segregating client assets and keeping them in a trust account, maintaining books and records, and ensuring the safety of client assets.

The amendments, which will increase protections for consumer assets, will take effect six months after April 4.

Related: Singapore police recommend hardware wallets against crypto drainers

Many crypto companies are getting licenses to offer their services to the Singapore market. Organizations such as Crypto.com, Coinbase and Ripple have received full payment institution licenses in the country.

After completing the requirements, Crypto.com received its Major Payment Institution (MPI) license in June 2023. Ripple received formal authorization on October 4, Coinbase received full MPI authorization on October 2, 2023.

Magazine: KuCoin's Desperate $10M Airdrop, 1 Tweet Pays Memecoin $37M: Asia Express