According to Bloomberg, Singapore recently approved the Financial Services and Markets Bill 2022, a law which will require local cryptocurrency firms who do business overseas to be licensed.

Currently, there is no regulation on cryptocurrency entities for anti-money laundering and financing of terrorism.

Recently, Singapore’s financial regulator has been discouraging digital token providers from advertising their services to the public, in regards to taking a cautious approach on cryptocurrency.

Key Highlights

• There has been both positive and negative reactions to the approved legislation; an anonymous comment questioning the necessity of a license if they do not target domestic consumers while another comment stating that the new and enhanced regulations are "reasonable."
• The financial services and markets bill, which imposes a penalty of up to S$1 million (~US$737,716) on financial institutions that experience cyber security breaches or if their services are disrupted.
• The bill will also authorise the Monetary Authority of Singapore (MAS) to prohibit individuals who have shown themselves to be unfit to perform key roles in the financial industry.
  
• Finally, the bill will also provide statutory protection to mediators, adjudicators and employees of approved dispute resolution schemes which will in turn strengthen the confidence and autonomy of these individuals when they carry out their duties.
  
• Meanwhile, early March this year, Singapore Finance Minister announced that income derived from non-fungible token (NFT) transactions or trading will be taxed.