Singapore's Latest Situation as New Law on Licenses for Virtual Asset Firms Tightens Crypto Rules

Singapore is moving forward with the decision to tighten crypto rules with the new law on licenses for virtual asset firms. That’s why the following events are starting to appear in my diary:

• -Singapore’s unicameral parliament, which aims to enforce rules in a tightened manner for crypto businesses, came to the fore by enacting legislation.
• -People were curious about the law that would force virtual asset service providers to apply for licenses.

According to Bloomberg’s news announcing the latest developments, the country’s struggle against money laundering comes to the fore. In this case, it is also stated that the fight against money laundering will progress and it should expand its regulations on combating the financing of terrorism.

What Happens Under the Financial Services and Markets Act

This law contains a mandate that may prohibit persons who do not properly fulfill key roles, functions, and activities under the Monetary Authority of Singapore and who arise in wrongful matters from working in areas such as payments and also risk management. It is also seen that new powers will come to the fore. If financial institutions that disrupt their services emerge, then these financial institutions will be penalized. It is also stated in this sentence that it will increase the maximum penalty to 1 million SGD.

• -DBS, one of the Singapore-based banking giants, also has an important situation in the bill. Most importantly, DBS, which wants to open its crypto exchange services to retail investors amid growing regulatory concerns, is now given the chance to make its plans. In particular, the fact that this plan was shelved in advance shows that this will no longer be the case.
• -According to the previous plans of DBS, it was also prominent that this year it aimed a special platform for retail investors only for members. The most important of these was the launch of the DBS Digital Exchange crypto trading platform.

It remains to be seen how the activities of many people in the major crypto industry will be affected by the decisions contained in the new regulatory law and how the plans will be realized. There is no certainty about this situation that the application process will deter some companies from entering the Southeast Asian market. An important statement came to the fore in a news report last December. Binance, the crypto exchange, has decided to close the Singapore exchange. In addition to this decision, Singapore-based Binance Asia Services also decided to focus its operations on the blockchain innovation center.