MAS crypto regulatory powers extended

Singapore’s parliament passed a law on April 5 that expands the central bank’s powers to regulate virtual asset service providers.

The government said previously the Monetary Authority of Singapore had not been able to inspect crypto asset providers based in the state that only operated abroad. Under the new law, the MAS can carry out anti-money laundering and counter-terrorism financing inspections and other measures on these firms.

“These entities may claim to be headquartered here to take advantage of Singapore’s global reputation,” Alvin Tan, the government’s trade minister and MAS board member, who introduced the law, said on April 4.

The law also gives the MAS further powers to fine financial institutions that have not established sufficient security measures against hacking risks.

As well as enhancing existing powers, Tan said the new measure consolidates regulatory and enforcement framework, previously spread across various laws.

The MAS will also now be able to bar individuals from working in the financial industry who did not previously fall under previous laws.

MAS managing director Loo Siew Yee said in January the central bank “strongly encourages the development of blockchain technology and innovative application of crypto tokens”. But she warned that cryptocurrency trading was highly risky and is “not suitable for the general public”.

In January, the central bank barred crypto providers from advertising their services anywhere except “their own corporate website, mobile applications, or official social media accounts”.