Singapore: Digital payment service provider outside current regulatory schemes will be licensed under the new government, which will be introduced in parliament on Monday (November 19).
The Payment Services Bill enhances administrative controls to safeguard customer's money, raise money against terrorism and increase cyber security measures. Electronic Kells and Digital Payment Tokens are expected to affect GrabPay, Bitcoin, ethereum.
The Payment Service (Overseas) Act (PSO) is now available for payment of service providers to the Minister of Education Og ki Kung on the board of the Singapore Monitory Authority Board, Money Transfers and Payment Business Law (MCBBA)
Currently, two laws are regulated by Singapore Payment Services. They save money like ease-link and net cash craft.
But new payment services and digital payment tokens are becoming more and more common, and they do not exactly fit into existing laws.
The new bill facilitates the control of payment services within an activity based legislation. The PS (O) A and MCRB will be canceled when the new Bill is implemented by the end of next year (2019). It has been through two general consultations since August 2016.
According to the Mass, the Payment Service Bill consists of two parallel controls.
First and foremost, the name and sums are given for MSEs' financial refinance payable systems that allow SNS.
The second framework is a compulsory licensing system for payment providers, based on their actions. They only need one license to perform one or more functions.
Payment of accounts, electronic payments, transfer of money inside and outside Singapore, money lenders using their platforms, cash transfer, transfer and transfer of digital payment tolls, bitcoin.
Activities take on different risks, and MAS operations will be controlled by the risk factors.
For example, the licenses allowed to be made by traders The transactions in transit are safe and should be accessible to the fund and personal electronic trap.
To make these operations, payment service providers must be one of three licenses: payment, a regular payment institution or a large payment institution.
Payments are made and standard payment institutions are mainly funded. Funding and extremism funding issues are primarily controlled. An important MSF spokesperson would be more effective in controlling key financial institutions.
Only those who change the current money under MCRB can still make money on the new bill.
Payment service providers may be a normal or large payment institution, depending on the size of their transaction.
Standard payment facilities are not allowed to handle over $ 3 million in a month. They can not keep an electronic float over $ 5 million. Those who handle it in higher amounts must be a major payment institution.
MAS will allow up to 12 months for payment service providers to comply with the changes after the new Law becomes effective. Digital Payment Tokens will be provided for six months.
Lucas May, head of TransferWay Bank, a global firm that specializes in global money transactions, welcomed these changes. However, "All Customer's funds are required to be kept safe, so you do not need the specified limit of e-Wallet transactions.