Latest news with #PaymentServicesAct
Arabian Post
4 days ago
- Business
- Arabian Post
Singapore Enforces Overseas Crypto Service Ban for Unlicensed Firms
The Monetary Authority of Singapore has mandated that all locally based digital token service providers without a valid license must cease offering services to overseas clients by 30 June 2025. This directive, issued without a transitional grace period, underscores Singapore's commitment to aligning with global anti-money laundering and counter-terrorism financing standards. Under the Financial Services and Markets Act , entities operating from Singapore and providing digital token services abroad are required to obtain a DTSP license. This regulation applies to both individuals and corporations, regardless of whether they are already licensed under the Payment Services Act or the Securities and Futures Act . The MAS has clarified that exemptions are limited, primarily for technical service providers that do not handle client funds or digital tokens. The licensing process is stringent, with the MAS indicating approvals will be granted only in exceptional cases. Applicants must demonstrate a sound business model and provide valid reasons for operating from Singapore while serving overseas markets. Minimum requirements include a base capital of SGD 250,000 for companies and partnerships, or a cash deposit of the same amount for individuals. Additionally, firms must have at least one local resident director or partner and maintain a physical office in Singapore with staff present for a minimum of 10 days per month. ADVERTISEMENT Licensed DTSPs are subject to ongoing regulatory obligations, including comprehensive AML/CFT measures such as customer due diligence, transaction monitoring, and compliance with value transfer requirements. They must also adhere to standards for technology risk management, cyber hygiene, and business continuity planning. Regular submission of regulatory returns and clear disclosure of risk warnings to customers are mandatory. The MAS has emphasized that there will be no transitional arrangements for firms currently operating without a license. Entities must halt all overseas digital token services immediately unless they secure the necessary authorization. Failure to comply will result in regulatory penalties. This move by the MAS reflects a broader effort to prevent regulatory arbitrage and ensure that digital asset service providers operating from Singapore adhere to international standards. By enforcing strict licensing requirements and eliminating transitional leniency, Singapore aims to bolster its reputation as a secure and compliant hub for digital financial services.
Yahoo
03-04-2025
- Business
- Yahoo
Japanese Banking Giant SMBC Explores Stablecoin Use With Ava Labs, Fireblocks
Sumitomo Mitsui Financial Group (SMBC), one of Japan's largest banking groups, is the latest financial giant to delve into stablecoins as the market for the $230 billion asset class is soaring with regulations being laid down globally. The banking group signed an agreement with Avalanche blockchain development firm Ava Labs, digital asset security company Fireblocks and IT service provider TIS to explore the commercialization of stablecoins in the country, according to a Wednesday press release. The collaboration will focus on developing a framework for issuing and circulating stablecoins, analyzing regulatory requirements and identifying practical applications, the release said. One key area of interest is using stablecoins for settling tokenized financial and real-world assets (RWA) such as government bonds, corporate debt and real estate. The timeline for potential commercial rollout has not been specified. Stablecoins, or cryptocurrencies pegged to fiat currencies like the Japanese yen or U.S. dollar, are a booming crypto sector, growing nearly 50% to $228 billion over the past year. They have become an integral part of global digital asset markets, and are also increasingly popular for remittances and payments as a faster and cheaper alternative to traditional banking rails. A wide variety of entities, ranging from global asset manager Fidelity Investments to U.S. state Wyoming, are making steps to enter the market. Read more: CoinDesk Weekly Recap: Stablecoins, Stablecoins, Stablecoins Japan has been spearheading efforts to regulate stablecoins, recognizing them as electronic payment instruments in 2023 with the revised Payment Services Act. Most recently, stablecoin issuer Circle launched its $58 billion USDC token in the country with financial giant SBI Holdings' subsidiary last month after obtaining regulatory approval. SMBC has previously engaged in digital asset initiatives, including establishing a digital asset custodian in 2022 and testing security token issuance with asset tokenization firm Securitize in 2021. Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Japan's SMBC Plans Stablecoin Development With Ava Labs Collaboration
Japan's Sumitomo Mitsui Banking Corporation (SMBC), the nation's second-largest bank, is set to explore the launch of its own stablecoin through a partnership with blockchain firm Ava Labs and crypto security provider Fireblocks. According to a report from Nikkei, the bank intends to begin experiments in the latter half of 2025, with a potential launch date targeted for 2026. Ava Labs, known for its Avalanche blockchain platform, will focus on establishing the foundational blockchain technology for the stablecoin. Fireblocks is slated to develop the management system necessary for the tokens. The initiative also includes collaborating with local IT firm TIS to facilitate the project's experimental phase. The move toward stablecoins comes as financial institutions recognize their potential to enhance cross-border payment efficiency and lower transaction costs. Traditional systems like SWIFT often incur higher fees and prolonged processing times due to intermediary involvement. SMBC has previously engaged with Web3 technologies, launching the Token Business Lab alongside HashPort in 2022, aimed at providing blockchain services, particularly in non-fungible tokens (NFTs). Also in 2022, the bank participated in pilot programs for soulbound tokens intended for identity verification. Regulatory frameworks in Japan are evolving, with the Payment Services Act amendments passed in June 2022 recognizing fiat-pegged stablecoins as "Electronic Payment Instruments." These regulations stipulate that only licensed banks, service providers, and trust companies may issue such stablecoins. In the United States, discussions around stablecoin regulation are gaining momentum, with notable figures, including President Donald Trump, advocating for a clear legal framework to support dollar-backed stablecoins. As the market for stablecoins grows—boasting a total market capitalization of approximately $234.6 billion—more traditional banking institutions are expected to consider entering this emerging sector. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Japan's FSA Explores New Regulations To Classify Crypto as Financial Products
Japan's Financial Services Agency (FSA) is set to propose a significant reclassification of cryptocurrency assets by 2026, according to a report by Nikkei. The move aims to designate cryptocurrencies as financial products under the Financial Instruments and Exchange Act, a shift from their current classification as a means of settlement under the Payment Services Act. This regulatory change comes amid a rise in reports of cryptocurrency-related scams. The FSA intends to implement stricter regulations on companies involved in crypto investments, which would require exchanges and firms soliciting crypto investments to register with financial authorities. This proposal is part of a broader effort to enhance the oversight of local crypto service providers. The upcoming amendments are expected to introduce insider trading rules aligned with those governing traditional financial products. However, details regarding these regulations have not yet been disclosed. It remains unclear how the FSA plans to enforce these rules on foreign entities operating in Japan, particularly as the agency recently requested major platforms like Apple and Google to block five unregistered overseas crypto exchanges from their app stores. As of January 2025, Japan had approximately 7.34 million active accounts for crypto trading, highlighting the growing interest in digital assets among the Japanese populace. The FSA's proactive approach reflects a response to the increasing complexity of the crypto landscape and the need for a regulatory framework that addresses emerging risks. The proposed changes come after closed-door discussions among experts analyzing the current legal framework. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Japan Mulls Reclassifying Crypto as a ‘Financial Product' to Curb Insider Trading: Report
Japan's Financial Services Agency (FSA) plans to reclassify cryptocurrencies as financial products under new rules, aimed at curbing insider trading in the digital asset market, per a Nikkei report on Sunday. The move comes as part of a broader effort to strengthen oversight in Japan's crypto ecosystem, which has witnessed growing adoption alongside a rise in fraudulent activities. The FSA intends to submit amendments to the Financial Instruments and Exchange Act (FIEA) to Japan's parliament as early as 2026, following a detailed review conducted by experts behind closed doors. Cryptocurrencies are currently categorized as a "means of settlement" under the Payment Services Act, a designation that has governed their use primarily as a payment tool rather than as investment vehicles. However, this existing classification has left gaps in regulatory oversight, particularly concerning activities like insider trading. As such, specific details about the insider trading rules — such as what constitutes insider information in the crypto context or the penalties for violations — have not yet been disclosed, leaving room for further clarification as the proposal takes shape. Sign in to access your portfolio
