MAS publishes a list of crypto-based companies that are not exempt from payment service regulations.
Licenses of over 100 digital payment token service companies in Singapore have been rejected by the Japanese financial publication The Nikkei by the Monetary Authority of Singapore (MAS).
While MAS is striving to position the country as one of the emerging crypto hubs in the world, reports suggest that the regulator continues to recognize the risks associated with the growth of the industry.
Data from the MAS shows that out of 170 companies that have applied for digital payment transactions, they have not met the “strict” regulatory requirements of the local financial supervisory authority.
Among the companies that have not received the approval of the Singaporean authority is the Dubai-based crypto exchange Bitxmi. CEO Sanjay Jain told The Nikkei that the company no longer sees Singapore as a viable location for expansion.
“We have an office there, but it’s just more or less – there is one person for our accounting and legal affairs”, Jain remarked.
Bitxmi is one of the many companies, including BitGo Singapore, Revolut Technology Singapore, South Korean blockchain company Klaytn, that are on the MAS list of companies that are “no longer exempt under the Payment Services Regulations”.
The regulator has also published another list of companies that have been granted an exemption from holding a license under the Payment Services Act. The list included key industry players, including Bitstamp Limited, Coinbase Singapore and Gemini Trust.
A spokesman for MAS stated that the authority is interested in creating an environment in which the crypto industry can thrive and offer fast cross-border transactions, while at the same time preventing their misuse for money laundering, terrorist financing, etc:
“The providers of digital payment token services in Singapore must comply with the requirements to mitigate such risks, including the need to conduct appropriate customer due diligence, conduct regular account checks, and monitor and report suspicious transactions.“