Singapore is counted among one of the crypto hubs of the world as it offers ease of business for these crypto service providers when a majority of the countries around the globe have taken a stricter regulatory approach.
Although Singapore recently enforced crypto legislation in the form of the Payment Services Act (PSA), the country has exempted popular crypto exchanges such as Binance and Coinbase along with Ripple from the act, right from the start of the new year.
Under the PSA act, crypto service providers are supposed to obtain an operating license from the Monetary Authority of Singapore (MAS). However, as per an official notification released on March 24, it has been revealed that several crypto service providers have been allowed to offer specific crypto service without the need of the operating license for a limited period of time.
The exempted firms including Binance, Ripple, and Coinbase have been offered a lease of 6 months from the start of the new year. All these firms can continue offering their service until July 28, 2020. After the said period is over, these crypto firms would be required to file a license under the current PSA act.
Few Crypto Service Providers Offered One-Year Grant
While Binance, Ripple and Coinbase have been offered a lease of 6 months, there are several other crypto entities which have been offered a longer period of exemptions from the PSA. These firms include the Gemini exchange, the OKCoin exchange, PundiX, Cumberland, DRW Holdings and a subsidiary of BitGo, which have been granted a lease period of 12-month.
Both Gemini and BitGo can continue offering specific crypto services such as account issuance services, domestic money transfer services, and inward cross-border money transfer services until January 28, 2021.
The move to exempt certain crypto service providers to operate in the country without the need to get an operating license can be seen as a bullish move by the MAS to encourage crypto adoption and establish Singapore as one of the crypto capitals of the World. After the said exemptions period are over, it would be interesting to see if the Singapore regulatory bodies grant any further exemptions to other crypto service providers looking to launch their service in the country.