Singapore on Tuesday passed a law requiring virtual asset service providers to be licensed if they do business overseas, according to Bloomberg.
See related article: How Singapore is reimagining its ‘Asian crypto hub’ image
The new legislation is an attempt by The Monetary Authority of Singapore (MAS) to ensure that it has adequate supervisory oversight over such service providers.
The law brings oversight to crypto firms when it comes to anti-money laundering and counter terrorism financing.
“[Digital token] service providers created in Singapore without providing any [digital token] services in Singapore are currently unregulated for AML/CFT,” MAS board member Alvin Tan said. “Further, these entities may claim to be headquartered here to take advantage of Singapore’s global reputation,” he added. “This creates reputational risks for Singapore.”
The MAS in January issued guidelines prohibiting the advertising of crypto services to the general public, in an effort to discourage retail investors from crypto trading.
See related article: Is Singapore retreating from its global crypto hub ambitions?