Singaporean watchdog tightens crypto license acquisition process

Considering the upper risk concerned in crypto, the Financial Authority of Singapore (MAS) has tightened the procedure to approve a crypto license for digital quality providers, creating the regime a “responsible international crypto hub.” Ravi Menon, the director of MAS, stressed enacting an additional strict method to issue an organization legal license to control crypto. He cited a bunch of reasons as arguments, as well as the misuse of cryptocurrency for hiding associated terrorist act financing.

Singapore looks to be a responsible global crypto hub

whereas speaking at the Digital quality Summit and in an interview with monetary Times, Ravi stated. The licensing method is demanding as a result of we would like to be an accountable international cryptocurrency hub, with innovative players however conjointly with robust risk management capabilities. we have a tendency to solely approve candidates with strong governance structures, match and correct board and management, and that we undergo their track record.

The government of Singapore has been steadily enacting cryptocurrency regulation rules for the past few years. and also the crypto adoption within the state has currently been modified since the MAS started a crackdown on crypto exchanges, restrained cryptocurrency advertisement, and created ATM operators shut down.

MAS has been active on cryptocurrency regulations

MAS has been actively operating to make sure correct rules and mitigate the utmost potential risk. However, even one application out of a hundred has not achieved a license as they were unable to fulfill licensing requirements. Similarly, the law authority thus far has approved a fraction of over one hundred seventy candidates of digital quality suppliers.

How does MAS approve a cryptocurrency license?

Notably, MAS didn’t approve the license for the world’s largest crypto exchange, Binance, in September 2021, reportedly saying the asset provider had not met the standards below MAS’s AML and KYC requirements. Hence, Binance withdrew its application rather than disrupting its name within the media.

whereas the top of the financial institution commented that a lot of crypto enthusiasts are innovative, nimble, and plan out of the box.However, they lack expertise of being regulated. As such, we’d like to bridge the culture issue.

MAS needs to get License:

Perform due diligence for all transactions of digital assets committed on the platform.
ensure consistency of individuals’ transactions by observance of client relationships.
Track obscurity and misuse of a brand new product or service by conducting risk assessments regularly.
Fulfill cyber hygiene and technology risk management requirements.
Follow the worth transfer rule.

On the opposite hand, the financial institution took a tough line across the retail investment of cryptocurrencies, expressed Menon.