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Amid the global fight against the illegal use of cryptocurrencies, the Parliament of Singapore will oblige local trading platforms that operate abroad to obtain regulatory approval.
The Singapore Parliament has passed a law requiring the licensing of crypto-currency companies that are headquartered in the country but do business abroad. The move aims to tighten regulations for digital asset providers as Singaporean crypto companies are currently not regulated in regards to anti-money laundering and countering the financing of terrorism.
The new rule became part of the Financial Services and Markets Bill. The bill includes imposing a higher maximum fine of SGD 1 million (about $737,000) on financial institutions if they are cyber-attacked or service interrupted.
The bill gives the Monetary Authority of Singapore (MAS) the power to prohibit certain individuals from holding key roles, activities and functions in the financial industry. These will now also include payment service providers and risk managers.
Singapore is balancing between loyalty and persecution of the crypto industry. On the one hand, he supports companies developing Web3, on the other hand, he issues instructions to limit the advertising of cryptocurrencies in public places and in the media.
Last month, Singapore Finance Minister Lawrence Wong announced that the country’s current income tax rules would apply to income generated from NFT transactions. The income tax regime will be determined depending on the type and use of tokens. At the same time, Asian experts on cryptocurrencies note the benevolence of the Singapore authorities towards large companies against the backdrop of political uncertainty.
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