Singapore's new Payment Services Act
On 14 January 2019, Singapore’s Parliament passed the Payment Services Act, which regulates payment services & places regulatory oversight with the Monetary Authority of Singapore (MAS).
The Act comprises 2 regulatory frameworks.
The designation regime enables MAS to designate significant payment systems for financial stability and efficiency & competition reasons.
The licensing regime covers 7 types of services: account issuance, domestic money transfers, cross-border money transfers, merchant acquisition, e-money issuance, digital payment token dealing and exchanges, and money-changing. There will be 3 tiers of licences: money-changing licences, standard payment institutions which may provide services up to a specified transaction flow or e-money float threshold, and major payment institutions, who will be subject to more regulation due to the higher associated risk.
This will make Singapore one of the first financial services regulators in the world to introduce a regulatory framework for digital payment token services.
If you have questions about what the Payment Services Act means for your business, please get in touch with us at email@example.com.