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MAS Grants License Exemption Crypto Companies For Limited Period

Jyoti Singh by Jyoti Singh - 11:43 AM Mar 28, 2020
MAS Grants License Exemption Crypto Companies For Limited Period

The Monetary Authority of Singapore (MAS) has exempted some crypto companies from holding a license that comes under the recently implemented Payment Service Act (PS Act) 2019. However, the MAS has clarified that the companies have been exempted for a specific time period, since January 28, 2020, as it was the time PS Act came into effect.

MAS Asks Crypto Companies To Provide Information 

The MAS in its statement has stated that it wants all the information of those crypto companies which have been in this business before the commencement of the Payment Service Act. The MAS further explained,
“These entities are not licensed under the PS Act to provide the specific payment services, but are allowed to continue to provide the specific payment services.”
According to the MAS notification, if any of the company failed to inform the central bank then it would be considered as an infringement of notification. And these companies would neither granted license nor they will be exempted from holding a license.

Rules For The Companies Under PS Act

A report suggests that those companies which provide digital payment services are free for six months from getting a license to operate. The six-month tenure will end on July 28, 2020. The companies providing other services are allowed to operate for 12 months without a license.

The report also states that Ripple Labs Singapore, Coinbase Singapore and Binance Asia Services are allowed to provide digital services in Singapore without a PSA license till July 28, 2020.

The MAS in its statement has mentioned that as soon as the company submits its license application the exemption would be ceased.

Singapore’s central bank and the financial regulator has also granted 12-month exemptions to companies like BitGo Singapore and Gemini Trust Company, as they are providing account issuance, domestic money transfer and inward cross-border money transfer services, therefore they are allowed to exempted till January 28, 2021.

The report added that many of the local businesses in Singapore appreciated the PSA work as a legal instrument, and they feel that despite threatening the crypto businesses, the PS Act will attract more of them (crypto businesses).

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About The Author
Jyoti Singh

Jyoti SinghGraduated from GGSIPU and did PG Diploma in English Journalism from IIMC. Last worked at Business News and Information Services Ltd. for more than one and a half years as a sub-editor.

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