Monetary Authority of Singapore proposes regulatory framework for bitcoin startups

Regulation | August 30, 2016 By:

The Monetary Authority of Singapore (MAS) is proposing a new regulatory framework for payments providers, including bitcoin exchanges, in the city state.

Under the proposal, payment activities will be divided into several categories and companies involved in payment services will be required to obtain a license from the central bank. Digital currency exchanges would be covered by a provision overseeing startups that provide “money transmissions and conversion services”.

“The scope of currency conversion activities is intended to encompass the business of exchanging of currencies at a rate of exchange. In addition, it is likely that under the [Proposed Payments Framework], virtual currency intermediaries which buy, sell, or facilitate the exchange of virtual currencies, such as bitcoin, will also be considered to undertake [money transmissions and conversion services],” said MAS.

The Monetary Authority of Singapore is Singapore’s central bank and financial regulatory authority.