Monetary Authority of Singapore (MAS), the country’s central bank, introduced the second consultation on its offered payment regulatory framework, known as the Payment Services Bill (the “Bill”).
The payment Services Bill will streamline the regulation of all payment services underneath a single legislation. Particularly, the introduced bill is also dragging virtual currency service like Bitcoin, exchange platforms, and other innovations. Thus, to overhaul regulation according to the menace created by these activities.
The Bill entrust MAS to oversight and regulate payment services for money –laundering and terrorism financing risks. Therefore it also allows MAS to strengthen the safety measure in order to safeguard the funds of consumers and merchants.
The payment organizations and Bitcoin exchanges that need to hold only one license under the fresh regulatory framework. Since it is to conduct any or all of the transaction activities.
An excerpt from MAS announcement states,
“The new framework will expand the scope of regulation to include domestic money transfers, merchant acquisition and the purchase and sale of virtual currencies. Only payment activities that face customers or merchants, process funds or acquire transactions, and pose relevant regulatory concerns will need to be licensed.”
Ravi Menon, MAS managing director said,
“We want to put in place a forward-looking regulatory regime to encourage wider adoption of secure e-payment solutions. The novel, activity-based licensing framework aims to right-size regulatory requirements to address the risks posed by specific payment activities. This will help to protect consumers and merchants while creating an environment conducive for innovation in payment services”
The consultation paper on proposed Payment Services Bill is now freely available for the public feedback and will proceed till 8th of January 2018.