The Monetary Authority of Singapore (MAS) is expanding its Payment Services Act to regulate custodial services for digital payment tokens and cross-border cryptocurrency transfers.

New regulations effective from April 4 also extend to transmission facilitation of digital payment tokens and activities involving funds from outside Singapore.

MAS is empowered to enforce stringent AML/CFT requirements, user protection standards, and measures for financial stability on digital payment token service providers.

Consumer protection guidelines include mandatory segregation of customer funds and implementation of robust security protocols.

MAS is collaborating internationally, with countries like the UK, Switzerland, and Japan, to promote responsible innovation in digital assets.

Service providers already operating in the sectors affected by the amendments must notify MAS within 30 days and submit a licensing application within six months starting from April 4.

Entities that fail to comply with the new regulations will be forced to cease operations.