SINGAPORE – The Monetary Authority of Singapore (MAS) will help link payment services firms with legal assistance after a new regulatory regime came into force on Tuesday (Jan 28)
The Payment Services Act adopts a licensing framework that recognises different activities and new developments in payment services, It also expands MAS’ regulatory reach to include new types of payment services like digital payment token services, more commonly known as cryptocurrency dealing or exchange services.
MAS said in a statement on Tuesday that it has initiated a payments regulatory evaluation programme to help payment services firms connect with legal services providers to support their transition to the new regulatory regime.
The new activity-based and risk-focused regulatory structure allows rules to be applied proportionately while also being robust to changing business models, said Ms Loo Siew Yee, MAS assistant managing director of policy, payments and financial crime.
This will facilitate growth and innovation while mitigating risk and fostering confidence in Singapore’s payments landscape, she said.
For digital payments, for example, there are now limits on how much e-money can be held in personal mobile wallets, such as GrabPay and Singtel Dash, and how much can be transferred to accounts other than the user’s designated bank accounts in a year, among other things.
With the commencement of the Act, the Money-changing and Remittance Businesses Act and the Payment Systems (Oversight) Act will be repealed, MAS said.
The implementation of the Act followed dialogues and a public consultation on the Bill in November 2017. Parliament passed the Act on Jan 14.