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Singapore Unveils Tougher Crypto Exchange Regulations as New Licensing Rules Take Effect
On Monday, Singapore unveiled a new set of stricter regulations for crypto exchanges, aimed at combating money laundering and enhancing market confidence. The country’s financial regulator, the Monetary Authority of Singapore (MAS), has introduced a licensing requirement for all digital token service providers (DTSPs) that offer services to international clients.
The new rules, which took effect immediately, have significant implications for local cryptocurrency companies that only serve foreign clients. According to reports, several major players in the industry, including Bitget and Bybit, are considering relocation to jurisdictions with more favorable regulatory frameworks, such as Hong Kong or Dubai.
These regulations were enacted through Singapore’s Financial Services and Markets Act (FSMA) and will bring significant changes to the country’s crypto landscape. Operators that fail to comply with these new rules may face penalties of up to $185,000 and imprisonment.
A key component of the new rules is a requirement for anti-money laundering controls, local compliance officers, and cybersecurity audits. The MAS emphasized that protecting the integrity of the regulatory framework was crucial in ensuring the stability of the financial system.
Industry experts have welcomed this move, stating that it will tighten controls on crypto exchanges. Chengyi Ong, head of Asia-Pacific policy at data group Chainalysis, expressed support for the new regulations by saying that Singapore is reinforcing its commitment to financial integrity.
The move may, however, impact smaller firms in the industry, with several already having ceased operations due to these increased regulatory requirements.
Source: usethebitcoin.com
