Showing 20 Q&A Sections for "payment services"

  • Regulations for all Payment Services Providers
    • Singapore
      • Do I require a payment service provider licence?
        If you wish to provide payment services under the Payment Services Act ("PS Act"), you must hold a payment service provider licence. You may refer to the decision tree below to assist you in considering whether you are conducting a payment service and which licence would be suitable for you.
        FinReg
      • What are examples of Payment Services that do not fall within the scope of the PSA?
        a. Limited purpose e-money b. Limited purpose digital payment tokens c. Payment services conducted by licensed or exempt entities regulated under the Securities and Futures Act and the Financial Advisers Act. Some examples of payment service providers exempt from the PSA include the follow: Banks; Merchant banks; Finance companies; Non-bank credit cards or charge card issuers However, it is notable that these entities are regulated under the respective legislation and may have to compl
        Millennium Law LLCPDLegal LLC
      • Penalties for contravening payment service provider rules and regulations
        The fines for offences reach up to S$250 000 and S$25 000 per day for continued offenses. Another penalty provided for unlawful control over payment service providers is imprisonment for a term of up to 3 years.
        PDLegal LLC
      • What are the types of services not regulated as payment services under the Payment Services Act?
        There are some services which are not regulated as payment services under the Payment Services Act. Some examples include: Service providers that process only data (e.g. payment instructions) and not money; Providers of payment instrument aggregation services and data communications platforms; Any payment service that is provided by any person in respect of any limited purpose e-money; Any services of dealing in, or facilitating the exchange of, any limited purpose DPTs; Any payment service
        Millennium Law LLC
      • Can foreign companies apply for a payment services licence?
        Foreign companies can apply for a licence under the Payment Services Act. Both foreign companies and local companies are governed under the same regulatory framework.
        Millennium Law LLC
      • What are the criteria to apply for a Standard Payment Service Institution Licence?
        Who can apply: The applicant must be a Singapore-incorporated company or a foreign corporation registered in Singapore. The applicant must have a permanent place of business or registered office. The applicant must have a minimum base capital of S$100,000. The applicant's board of directors should have either: at least 1 executive director who is a Singapore Citizen or Singapore Permanent Resident at least 1 non-executive director who is a
        FinReg
  • Nature of DPT service
    • Singapore
      • Does a DPT wallet service constitute a provision of e-wallet services viz. the provision of account issuance services?
        An account that stores only DPTs is not likely to be a payment account. This is because a payment account must be an account with which the holder can initiate a payment order with or execute a payment transaction.
        PDLegal LLC
      • Digital Payment Token (DPT) service definition
        “digital payment token service” means any of the following services: (a) any service of dealing in digital payment tokens (other than any such service that the Authority may prescribe); (b) any service of facilitating the exchange of digital payment tokens (other than any such service that the Authority may prescribe);
        FinReg
      • What types of DPT services are regulated under the Payment Services Act?
        Digital payment tokens ("DPTs"), commonly known as cryptocurrencies, are defined in the Payment Services Act 2019 as any digital representation of value that is expressed as a unit and is not denominated in any currency or pegged to any currency by its issuer. DPTs serve as a medium of exchange accepted by the public or a section of the public as payment for goods or services or for the discharge of a debt. They can be transferred, stored or traded electronically. A person providing services inv
        KGP Legal LLCRajah & Tann Singapore LLP
      • Is the transfer of DPTs considered a DPT service under the PS Act?
        The Payment Services Amendment Act (to be enacted) will expand the definition of DPT service to include the transfer of DPTs "Transfer of DPTs: As bad actors could use entities that facilitate the transfer of DPTs to move or layer the proceeds of illicit assets by transferring value in the form of DPTs from one person to another, the proposed amendments expand the definition of “digital payment token service” to include: Any service of accepting DPTs from one DPT address or account, whethe
        FinReg
      • How will the PS Amendment Bill affect DPT services?
        DPT service providers engaging in such activities will need to be licensed under the PSA and will be required to implement anti-money laundering / countering the financing of terrorism measures." 2020
        FinReg
  • Payment Service providers: Licence application
    • Comparison
      • PS licence: SPI vs MPI vs Money-changing
        The three (3) types of licenses that payment service provides can hold to provide services under the PSA are: (a) Money-Changing Licence; (b) Standard Payment Institution Licence; (c) Major Payment Institution Licence. Payment service providers can conduct multiple payment services under one licence. Payment service providers can conduct multiple payment services under one licence. There are three types of licences that payment servi
        Millennium Law LLC
    • Singapore
      • What is a payment service provider licence?
        Under the Payment Services Act 2019, a payment service provider licence (PS licence) is required if a person or business engages in any of the regulated activities stipulated in the Payment Services Act 2019. Payment service providers and payment systems are both regulated under the Payment Services Act 2019 ("PS Act"). Payment service providers are licensed to provide specified payment services under the PS Act.
        FinReg
      • Which payment activities are regulated under the PSA and require a licence?
        MAS regulates seven payment services under the PS Act: Activity Type Brief Description Activity A: Account issuance service The service of issuing a payment account or any service relating to any operation required for operating a payment account, such as an e-wallet (including certain multi-purpose stored value cards) or a non-bank issued credit card. Activity B: Domestic money transfer service Providing local funds transfer se
        Millennium Law LLC
      • How does a payment service provider qualify for an exemption or exclusion under the PSA?
        Persons who have carried on certain regulated payment services prior to the commencement of the PS Act may notify MAS for exemption from holding a licence under the PS Act for a specified period. Entities who are providing services pertaining to limited purpose e-money and/or limited purpose digital payment tokens.
        PDLegal LLC
  • User protection requirements for DPT services
    • Singapore
      • Are investors of DPTs protected under the Payment Services Act?
        At the moment, MAS does not intend to provide any regulatory safeguards for investments in DPTs, the safety and soundness of DPT service providers or the proper processing of DPT transactions. Providers of DPT services are regulated primarily for ML/TF risks. MAS has issued advisories to warn members of the public of the risks of investing in DPT and may require providers of DPT services to make specified disclosures on the risks of such investments to their customers.
        Millennium Law LLC
  • Payment services: Account issuance service
    • Singapore
      • How is account issuance regulated under the Singapore PSA?
        Under the Payment Services Act (PSA), Singapore, account issuance is regulated under the activity based, risk-focused licensing framework. Account issuance service providers must hold a license to provide services relating to the operation of a payment account (an e-wallet or a non-bank issued credit card) The service provider can either hold a standard payment institution license to conduct payment services below a specified threshold a major payment institution license without any limits on
        Holland & Marie
      • How does the PSA affect businesses licensees that provide account issuance service?
        Major payment institutions that carry on a business of providing an account issuance service must ensure that the currency equivalent of the e-money contained and/or transferred in any period of one year in a personal payment account does not exceed the prescribed amount of S$5,000.00 at the end of the day and S$30,000.00 annually.
        PDLegal LLC
      • How is account issuance regulated under the PS Act different from the previously regulated payment services?
        Money-changing businesses and remittance businesses were previously regulated under the MCRBA, and the holding of stored value facilities where the float was over $30 million was regulated under the PS(O)A. The PS Act continues to regulate money-changing services. Remittance businesses are captured within the scope of cross-border money transfer service. The provision of stored value facilities and stored value are regulated under the PS Act as
        FinReg
      • What are the types of payment accounts that fall within the scope of "account issuance service"?
        An account issuance service includes the service of issuing a payment account to any person in Singapore. The following are some examples of "payment account": - A bank account; - A debit card; - A credit card; - A charge card; - An e-wallet. An account that stores only DPTs may not be a payment account. An e-wallet top-up service may also not be considered an "account issuance service", if the service provider accepts money from a customer for the purpose of sending the money to an e-wallet operator
        Millennium Law LLC
  • Nature of Crypto Payment Gateways
    • Singapore
      • As a crypto payment gateway, must I have a payment service provider licence?
        Cryptocurrencies are known as "digital payment tokens" in Singapore. Businesses accepting crypto payments are considered as "digital payment token transfer service". As such, they are likely to require a payment service provider licence. MAS regulates seven payment services under the PS Act: Activity A: Account issuance service Activity B: Domestic money transfer service Activity C: Cross-border money transfer service Activity D: Merch
        FinReg
  • Regulations for custodian wallets
    • Singapore
      • As a custodian wallet service, must I hold a payment service provider licence?
        If a custodian wallet service provides any of the activities currently regulated under DPT service provider, it will need to be licensed. If a wallet is able to hold both moneys and DPTs, and the payment service provider carries on a business of providing DPT services, account issuance services and e-money issuance services, the payment service provider will need to be licensed to provide any of those services.
        FinReg
  • MAS outlook on Cryptocurrency
    • Singapore
      • What is MAS's view of provision of custodian wallets as a DPT service provider's activity under PS Act?
        Provision of custodian wallets for or on behalf of customers: As entities that offer standalone custodial services for DPTs are exposed to potential ML/TF risks, such entities could be used to safekeep illicit assets or assets for illicit actors (among others). The proposed amendments expand the definition of “digital payment token service” to include the service of safeguarding or administration of: A DPT where the service provider has control over the DPT; or A DPT instrument where the
        FinReg
      • Will MAS regulate brokering DPT transactions under the Payment Services Act?
        "Brokering of DPT transactions (without possession of money or DPTs by the DPT service provider): The proposed amendments expand the definition of “digital payment token service” and include the service of inducing or attempting to induce any person to enter into or to offer to enter into any agreement for or with a view to buying or selling any DPTs in exchange for any money or any other DPT (whether of the same or a different type).
        FinReg
  • Facilitating Crypto Trading
    • Singapore
      • Will MAS regulate brokering DPT transactions under the Payment Services Act?
        "Brokering of DPT transactions (without possession of money or DPTs by the DPT service provider): The proposed amendments expand the definition of “digital payment token service” and include the service of inducing or attempting to induce any person to enter into or to offer to enter into any agreement for or with a view to buying or selling any DPTs in exchange for any money or any other DPT (whether of the same or a different type).
        FinReg
  • Nature of Money Changing Services
    • Singapore
      • Is the provision of money-changing services regulated under the PS Act?
        Yes, money-changing service is 1 of the 7 regulated activities under the Payment Service Act. "You must apply for the money-changing licence if you do not have in force a standard payment institution licence or a major payment institution licence that permits you to carry out money-changing services." "A business holding a money-changing licence can conduct only money-changing services."
        FinReg
  • Nature of payment gateway
  • Regulations for activities relating to E-money
    • Singapore
      • Are payment services relating to e-money regulated in Singapore?
        E-money is defined in the Payment Services Act 2019 as electronically stored "money" that is denominated in a currency. Its value is pegged to the currency by its issuers and the e-money represents a claim on its issuers. E-money would be paid for in advance and stored in a payment account (commonly knowns as e-wallet) for the purpose of making payment for a transaction. Most providers of e-wallets and e-money are regulated for the following activities: Account issuance service: Issuing or prov
        Rajah & Tann Singapore LLP
      • Are domestic money transfers regulated under the PS Act?
        Yes, domestic money transfers is 1 of the 7 regulated activity under the Payment Services Act. 2021
        FinReg
  • AML/CFT for crypto service providers
  • Nature of Digital Payment Tokens (DPTs)
  • Nature of Cryptocurrencies
  • Overview of Financial Services
    • Singapore
      • 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
        FinReg
  • Nature of Point-of-Sale (POS) Terminals
    • Singapore
      • What licence must I obtain to provide payment kiosks services?
        The licence required depends on the following financial thresholds. Note that the type of licence is the same even if your payment kiosks offers other activities regulated under the Payment Services Act besides domestic money transfer. and (Pages), License Type Description Standard Payment Institution License Are able to conduct multiple payment services. Subject to the following thresholds: ≤S$3m monthly transactions for any activity
        FinReg
  • Regulations for fiat on/off-ramps
    • Singapore
      • Do fiat on/off ramps fall under the scope of the PS Act?
        Fiat on/off ramps will be regulated under the PS Amendment Act. "Currently, MAS regulates service providers dealing in DPTs and facilitating the exchange of DPTs where the service provider comes into possession of moneys or DPTs under the PS Act. These are common business models of DPT service providers that operate in Singapore."
        FinReg
  • Operating or listing on a crypto exchange
    • Singapore
      • Do crypto exchanges need a payment service provider licence to operate in Singapore?
        "(2) License: Any person carrying out digital payment token service has to obtain a payment institution license, unless exemptions apply.10 A standard payment institution license applies to companies with payment transactions up to $3million per month and a major payment institution license has to be obtained by companies with payment transactions which exceed $3million per month.
        FinReg
  • Tax on crypto transactions
    • Singapore
      • Are payments using digital payment tokens (DPTs) for goods and/or services subject to GST?
        Yes. Use of digital payment token as payment 6.1 The use/provision of digital payment tokens as payment for anything (other than for fiat currency or other digital payment tokens) is disregarded as a supply for GST purposes. 6.2 If you are paying digital payment tokens in return for goods and services, you need not account for output tax. 6.3 If you are receiving digital payment tokens in return for your supply of goods or services and you are GST-registered, you
        FinReg