The Payment Services Act (PS Act) in Singapore has come into force to boost payment services regulation, said the Monetary Authority of Singapore (MAS).
The act is also intended to improve consumer protection and confidence in e-payments use.
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PS Act will involve an activity-based licensing framework based on the evolving payments industry. MAS will be able to add new payment types, including digital payment tokens, to its regulatory scope.
The monetary authority has launched a payments regulatory evaluation programme for payment services firms. The programme aims to help firms transition to the new Payment Services Act and collaborate with legal service providers.
MAS assistant managing director of Policy, Payments & Financial Crime Loo Siew Yee said: “The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry.
“The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”
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By GlobalDataThe new act will repeal the Money-changing and Remittance Businesses Act. It involves two regulatory frameworks, designation regime and licensing regime.
Under the designation regime, MAS will able to designate significant payment systems. The licensing regime will enable the authority to regulate a variety of payment services.
The bill includes three types of licensees – money-changing, standard payment institutions and major payment institutions. It also allows the MAS to regulate inward and outbound remittance services.
Last November, the MAS rolled out a blockchain-based prototype network for multi-currency payments.
