The government of Singapore has taken a step forward in recognizing cryptocurrencies as legal tender through the Payment Services Act (PSA).
The Act, which passed parliamentary legislation last January 2020 includes cryptocurrency as among the specific payment services allowed as part of the country’s payment systems; officially categorizing digital coin payments under “digital payment token services.”
The PSA sets the regulatory guidelines that the Monetary Authority of Singapore will follow in overseeing not only cryptocurrency operations but all other payment services currently being utilized in the country’s payment system.
The list of specified payment services mentioned in the new legislation includes: payment accounts creation, local money transfers, foreign or cross-border money transfers, merchant-purchases payment services, e-money issuances, digital or cryptocurrency payment services and money-changing activities.
MAS Allows 7 Cryptocurrency Firms to Operate Pending License Approval
As a demonstration of the government’s willingness to promote new and innovative payment methods, the Monetary Authority of Singapore gave 7 cryptocurrency operators temporary authority to operate.
Within a period of 6 months, Coinbase, Binance, Bitstamp, Luno, Gemini, Wirex and Upbit can offer cryptocurrencies as modes of payment, while pending the MAS’ decisions on whether to approve or reject their respective license application.
Their immediate acceptance as part of Singapore’s payment system was in line with their early compliance in notifying MAS about their cryptocurrency operations in Singapore