A law was passed in Singapore which extended its regulation of cryptocurrency to companies that even had a local presence that provides digital-based token services outside the country.
This bill called the Financial Services and Markets Bill 2022, was taken up in parliament, where lawmakers approved it. Under the purview of this law, local digital token providers who are based in Singapore but also offer their services abroad will be subject to domestic regulations.
Under this legislation, players who deal in Ethereum and Bitcoin, as well as other digital currencies, facilitate their exchange as well as offering other kinds of financial advice on sales of such digital tokens.
Those crypto players that have their operations in Singapore and serve the localized market are at present already regulated by the central bank of Singapore. It is required of them to stick to licensing requirements along with guarding against terrorist financing and laundering of money.
However, those players that did not provide crypto services in Singapore did not previously come under the same laws. This new law changes all of that. It requires crypto players, irrespective of their geographical market, to come under the exact same requirements of licensing.
A member of the Crypto Lobby on conditions of anonymity said that it was a sad development and that the crypto business had effectively gone ten steps backward with the passing of the new law.
Singapore does not stand alone in this. Thailand, last month, also issued bans on payments that used cryptocurrencies as well as other digital assets so that there was stability in financial markets.