Overview of Financial Services
How might the upcoming Omnibus Act affect parties involved in cryptocurrency-related activities?
"The Monetary Authority of Singapore (MAS) launched its Consultation Paper on the New Omnibus Act for the Financial Sector, setting out proposals for an expansion and consolidation of its regulatory powers. The proposal will have significant consequences for financial services firms operating in Singapore and especially for service providers working with digital assets (cryptocurrencies).
Regulation of Virtual Asset Service Providers:
To meet FATF standards on the regulation of virtual asset service providers (VASP), the Omnibus Act would introduce a definition of VASP based on the one set out in Singapore’s Payment Services Act (PSA), along with a requirement for VASPs to obtain jurisdictional licenses to operate within Singapore. Based on that definition of VASP, the licensing requirement would apply to firms that deal with or facilitate the exchange of cryptocurrencies, that safeguard cryptocurrencies, or that offer advisory services relating to cryptocurrencies."
VASP AML/CFT Requirements:
The VASP licensing criteria in the Omnibus Act would also require firms to apply comprehensive AML/CFT measures to their cryptocurrency services. The Act does not allow scope for lower risk exemptions to the AML/CFT requirement: VASPs must put the full range of AML/CFT controls in place for all customers using the standards set out in the PSA.
The Omnibus Act would not limit MAS’ oversight to VASPs that operate solely in Singapore. The new rules would mean that overseas VASPs and Singaporean VASPs with overseas operations must ensure that their AML/CFT standards are aligned with those in effect in Singapore."