Singapore Central Bank Updates ICO Guidelines

Singapore Central Bank Updates ICO Guidelines
ICO News

The Monetary Authority of Singapore (MAS) has passed a new set guideline for businesses wanting to raise funds through initial coin offering (ICOs).

The new draft introduces a “New Payments Framework” which elaborates the Singapore central bank’s status on certain intermediaries’ observation of instructions depending on Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) policies.

The intermediaries cover almost every member who is involved in the activities linked to an ICO asset. From producers of the tokens to the facilitators of online trading to those offering financial consultation related to the tokens. Each one of them must acquire a license or approval from the respective authority to carry out their function.

According to New Payment Framework all such intermediaries have the obligation to “take appropriate steps to identify, assess, and understand their money laundering and terrorism financing (ML/TF) risks.”

Internal policies under appropriate MAS notices must be developed and implemented to allow the central bank to monitor customers’ transaction history, financial records, per the law.

In November, a new Payment Services Bill (PSB) was put forward by MAS in the Singaporean Parliament, which brought cryptocurrency under the regulation mentioned for domestic and international money transfers and foreign exchange transactions.

The PSB included in the updated guidelines work as AML/CTF enabler inside the ICO space.

The excerpt reads,

A person carrying on a business of providing any service of dealing in digital payment tokens or any service of facilitating the exchange of digital payment tokens must be licensed and will be regulated under the PSB for AML/CTF purposes only and will be required to put in place policies, procedure and controls to address its AML/TF risks.

 

The rest of the draft, however, remains the same as what was issued in November 2017.

 

The updated version of ICO guidelines can be found here

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