Payment Services (Amendment) Bill

To strengthen measures to counter money laundering and terrorist financing, MAS introduced the Payment Services (Amendment) Bill to regulate virtual payment services providers and strengthen laws governing digital payment tokens to ensure users’ asset are protected by companies.

This widen the regulatory reach on digital payment token (“DPT”) intermediaries and activities. For instance, the Bill introduce new regulated activities including:
 (a)     Transfer of DPTs;
 (b)     Provision of custodian wallet services for DPTs; and
 (c)     Facilitating the exchange of DPTs without possession of moneys or DPTs by the DPT service provider.

The Bill  enhances the regulatory framework for virtual asset service providers, strengthening MAS’ regulatory powers to introduce user protection measures for DPT activities (e.g. stablecoins), or other measures on DPT service providers where it is in the public interest.

The Regulatory and Compliance Sub-Committee of the Blockchain Association of Singapore hosted a webinar on 18 November 2020 to introduce these important changes, and the practical implications on the industry (including DeFi projects).

Thank you to the Committee for the insightful sharing! We hope you have enjoyed the sharing and gained a better understanding of the Payment Services (Amendment) Bill. View the video recording of the webinar here to learn more about the Payment Services (Amendment) Bill if you have missed it!