Plans in Place to Strengthen the Laws That Regulate Virtual Payment Service Providers
Singapore will be stepping up its measures against terrorist financing and money laundering. Changes to the law will strengthen regulations on virtual payment service providers.
The Bill will improve the current regulatory framework that is in place for (Virtual Asset Service Providers (VASP). This includes cryptocurrency companies, digital exchange and e-wallet services. The Bill has already been introduced in parliament.
If the bill is approved, it will enforce standards by the international body. This will be aimed at addressing risks posed by VASP services for protection against terrorist financing and money laundering.
The Risk of Virtual Payment Service Providers
VASP services are more vulnerable and could easily be exploited by cybercriminals. The criminal activity could easily take place by moving assets through these services. For example, by transferring value through digital payment tokens.
Therefore, the Bill will seek to expand on what defines digital payment token services and the transfer of such tokens. The changes will include cross-border money transfer services to mitigate the risks involved there.
The changes for better money laundering and terrorist financing measures will be subject to approval by the Monetary Authority of Singapore (MAS)’s regulations. MAS has the authority to invoke these measures if deemed necessary for the public interest.