The Monetary Authority of Singapore is reportedly preparing to issue regulatory approvals for some digital payment token service providers to operate in the city-state.
The MAS has notified «several» digital payment token (DPT) service providers that «it is prepared to grant them payment services licenses under the Payment Services Act (PSA)», according to a «Business Times» report citing a spokesperson.
The number of applicants that were notified was not disclosed but the MAS noted that some DPT applicants did not meet standards in areas like anti-money laundering and terrorism financing as well as tech risk controls.
«Applicants who have received such notifications from MAS do not yet hold payment services licenses,» the regulator said. «A license will be subsequently granted to an applicant, provided it puts in place necessary measures to meet MAS’ requirements in order to operate as a licensee.»
PSA
The PSA came into effect in January last year and it mandated all DPT serve providers in Singapore to be registered and licensed, giving supervisory powers to the MAS over such entities.
Thus far, all DPT service providers have been operating under an exemption that will remain in force until license applications are approved, rejected or withdrawn.
Independent Reserve
Knowledge of the MAS’ plans first surfaced after Australian crypto exchange Independent Reserve said it had obtained «in-principle approval» for the payment services license.
«While operationally, things will not change from receiving the in-principle approval, consumers will have the peace of mind that we and others that will receive their in-principle approvals have met MAS’s high standards,» said the firm’s Singapore managing director Raks Sondhi.
