In its Proposed Payments Framework, the country’s main financial regulator the Monetary Authority of Singapore suggests licensing bitcoin payments providers.

The MAS claims that its aim is “to better address specific issues such as consumer protection, access and corporate governance” and to increase “the flexibility to address emerging risks such as cybersecurity, interoperability, technology, and money laundering and terrorism financing.”

According to the document, payment operations will be divided into several categories. The startups that provide “money transmissions and conversion services” will be classified as digital currency exchanges.

“The scope of currency conversion activities is intended to encompass the business of exchanging of currencies at a rate of exchange. In addition, it is likely that under the [Proposed Payments Framework], virtual currency intermediaries which buy, sell, or facilitate the exchange of virtual currencies, such as bitcoin, will also be considered to undertake [money transmissions and conversion services],” the proposal says.

However, the decision will not be taken until 31 October. Meanwhile, the regulator will be gathering feedback on the initiative from interested parties, CoinDesk reports.

The MAS also wants to launch a “National Payments Council” to oversee the industry and to interact with its key players. Both public and private sectors are to be involved. 

Meanwhile, in early August the regulator included blockchain industry leaders on its advisory panel, Blythe Masters from Digital Asset Holding and Tim Grant from R3 among them. The panel will provide consulting to the Singapore regulator on how new technologies can enhance financial services in the country.

Lyudmila Brus