The Monetary Authority of Singapore (MAS) declared amendments to the Payment Services Act (PS Act) to broaden the regulatory coverage for digital payment token (DPT) service providers.

MAS specified that these changes encompass various activities such as custodial services for DPTs, token transfers, exchange facilitation, and cross-border money transfers, even if funds are not handled or accepted in Singapore.

Additionally, MAS stated that the updates would enable the imposition of additional requirements regarding anti-money laundering, user protection, and financial stability on DPT service providers. These amendments will be rolled out gradually, commencing on April 4, with transitional arrangements provided for affected entities.

MAS emphasized the necessity for entities to notify and apply for a license within specified timelines to continue operations during the review period. Noncompliant entities will face closure.

Furthermore, MAS will introduce amendments focusing on safeguarding customer assets of payment token service providers, including measures such as asset segregation, trust account placement, and security protections.

The implementation of these asset protection measures will occur six months after April 4. Notably, several crypto companies, including Crypto.com, Coinbase, and Ripple, have obtained payment institution licenses to offer services in Singapore, with completion dates ranging from June 2023 to October 2023.