The authority of Singapore has reportedly granted an approval for a regulation that would equip the Monetary Authority of Singapore (MAS) with extra power, in dealing with crypto entities out of the nation. 

Specifically, according to records from the Parliament of Singapore, the government has reportedly offered a legal greenlight to the “Financial Services and Markets Bill”, after a second reading was carried out on April 4th.

Per MAS, the legislation will reportedly make it mandatory for virtual asset service providers functioning outside the geological scope of the nation to be licensed, abide by Anti-Money Laundering (AML) and Combating the Financing of Terrorism requirements (CFT). 

“Digital token service providers could easily structure their businesses to evade regulation in any one jurisdiction, as they operate mainly online. We could be exposed to reputational risks brought by DT service providers created in Singapore, and which provide services relating to virtual assets such as Bitcoin outside Singapore.” MAS board member Alvin Tan, reportedly revealed on behalf of senior minister Tharman Shanmugaratnam.

The financial watchdog will be receiving extra power to carry out inspections of digital token service providers, associated with AML/CFT compliance and assist financial regulators and enforcement agencies in different nations. 

Previously, the MAS reportedly said no in issuing licenses for over 100 crypto companies looking to function in Singapore.

“DT service providers created in Singapore without providing any DT services in Singapore are currently unregulated for AML/CFT. These entities may claim to be headquartered here to take advantage of Singapore’s global reputation. This creates reputational risks for Singapore.” Tan further remarked. 

The bill will further widen the scope of the MAS’ authority to come up with bans towards orders against financial industry figures “who have shown themselves to be unfit to perform key roles, activities and functions.”