Overview of Financial Services

How will the amendments to the Payment Services Act affect blockchain platforms in the future?

"The changes propose to widen the existing scope of services involving digital payment tokens, domestic money transfer and cross-border money transfers, as well as to expand the powers of the MAS to impose additional licence conditions and user protection measures on certain digital payment token service providers."

"Under the amendments, the scope of regulated digital payment token services will be expanded to include:

  • facilitating the transmission of digital payment tokens from one account to another;
  • custodial services for digital payment tokens; and
  • facilitating the exchanges of digital payment tokens where the service provider does not come into possession of the moneys or digital payment tokens involved."

"Subsequently, these changes will regulate blockchain-related businesses that already offer such services in the market, but are not subject to existing laws under the SFA or the PS Act."

"Both the SFA and the PS Act also contain various AML/CFT regulations with which companies need to comply. Such operators may be required to set up cybersecurity systems to reduce technological and cyber-risks."

Source: Chambers and Partners, last revised on 8 May 2022