100 Companies Fail to Obtain Crypto Licenses in Singapore Due to Tough Regulation – Regulation Bitcoin News
More than 100 firms that utilized for a license to supply crypto companies in Singapore have both been turned down or withdrawn their functions. “Cryptocurrencies could be abused for money laundering, terrorism financing, or proliferation financing due to the speed and cross-border nature of the transactions,” mentioned the nation’s central financial institution, the Monetary Authority of Singapore (MAS).
Tough Crypto Regulation in Singapore
Since Singapore started regulating the crypto sector earlier this yr, about 170 firms have utilized for a license to supply “digital payment token services,” which embrace crypto-related companies.
However, greater than 100 firms that utilized for a license have both been turned down or withdrawn their functions, Nikkei Asia reported Monday.
Companies that had been working within the nation previous to the introduction of the licensing regime had been granted exemptions till their license functions have been processed. Senior Minister Tharman Shanmugaratnam instructed parliament in July that 90 firms had been working underneath such exemptions.
A spokesperson for the Monetary Authority of Singapore (MAS), the nation’s central financial institution and regulator of the crypto sector, instructed the information outlet: “Cryptocurrencies could be abused for money laundering, terrorism financing, or proliferation financing due to the speed and cross-border nature of the transactions.” The spokesperson elaborated:
Digital fee token service suppliers in Singapore … must adjust to necessities to mitigate such dangers, together with the necessity to perform correct buyer due diligence, conduct common account evaluations, and monitor and report suspicious transactions.
So far, solely three firms are listed as licensed entities on the MAS web site: DBS Vickers Securities, a unit of DBS Group Holdings, Southeast Asia’s largest financial institution; digital funds startup FOMO Pay; and Australia’s Independent Reserve. The MAS mentioned in November that Singapore strives to grow to be a world crypto hub.
DBS’s head of capital markets and the chairperson of the financial institution’s crypto exchange mentioned in September: “We are growing very rapidly. Investors are gradually exploring cryptocurrencies and digital assets.”
In September, the central financial institution ordered Binance to cease offering crypto companies to residents. Last week, Binance introduced that its Singapore platform will probably be shutting down.
Binance CEO Changpeng Zhao (CZ) claimed that the explanation behind the closure of its Singaporean exchange was because of an 18% stake in Hg Exchange (HGX), a regulated securities exchange in Singapore. However, Bloomberg reported that the actual purpose was as a result of Binance couldn’t meet the necessities for a license to function a crypto exchange.
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