(29 January 2020 – Singapore) The Monetary Authority of Singapore (MAS) is helping payment services firms transition to a new regulatory regime which came into force yesterday.
The Payment Services Act (PS 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 such as digital payment token services, more commonly known as cryptocurrency dealing or exchange services.
The Monetary Authority said in a statement yesterday that it has initiated a payments regulatory evaluation program to help payment services firms connect with legal services providers to support their transition to the new 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, assistant managing director of policy, payments and financial crime at MAS.
“The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape,” she was quoted as saying in the statement.
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of the Act, the Money-changing and Remittance Businesses Act and the Payment Systems (Oversight) Act will be repealed, MAS said.