Monetary Authority of Singapore (MAS) has granted its ‘in-principle’ approval to offer digital payment token services licence to Australia’s Independent Reserve as part of their global push to tackle fraud and scams in crypto assets.
MAS is receiving applications from 170 monetary exchange groups seeking regulatory consent for managing digital asset investments.
Head of Financial Institution Regulatory Research at Fitch Ratings, Monsur Hussain, said that Singapore is modelling similar efforts by US and European regulators to regulate cryptocurrency exchanges on anti-money laundering (AML) and due diligence measures, but not on trading activities.
Mr Hussain added, “The implications of MAS’s approval will be to strengthen customer protection mechanisms, transaction screening and AML processes, which will help counter financial crime,”
Due to the risks in investing in digital currency, getting regulatory approvals and licences from a trusted regulatory body like MAS will ease the process of separating the transparent and professional exchanges from less-reputable groups operating in the sector.
