MAS Grants Limited License Exemption to Blockchain Platform Pundi X Labs!
Blockchain platform Pundi X Labs obtained an exemption from Singapore’s financial regulatory agency, the Monetary Authority of Singapore (MAS), which will allow Pundi X to work without a license in the country for six months.
Pundi X to Run Without License for Six Months
Pundi X declared the news of the exemption through a blog post on Medium on March 25, 2020. According to the declaration, the blockchain startup will offer services like account issuance and digital payment token in the nation without a license.
Nevertheless, the license privilege is for a limited period as the MAS enabled the company to carry out services without a license from January 28, 2020, to July 28, 2020.
While Pundi X is recently working “freely” in the country, the blockchain startup has stated that it would still apply for a license to provide its services in Singapore.
As reported by BTCManager in January 2020, the Singapore financial watchdog officially launched the PSA (Payment Services Act). The renewed PSA is a more extended version, as it makes room for token issuers, digital currency exchanges, and money services platforms.
While the novel PS Act attempts to make it simpler for virtual currency platforms and other payment services firms to succeed in the region, it would oppose illegal activities such as money laundering, by mandating bitcoin-related businesses to embrace a stringent KYC (know-your-customer) and AML (anti-money laundering) policy.
Aside from Pundi X, the MAS conferred license exemption to various other crypto-related firms and fintech businesses. Some of the virtual currency platforms involve Binance Asia, Luno, Liquid Group, Upbit Singapore, OKCoin, Paxos Global, Coinbase Singapore, and Bitcoin Exchange.
Singapore: A Developing Hub for Crypto and Blockchain Technology
Singapore’s optimistic attitude towards the cryptocurrency and blockchain technology has attracted lots of businesses to the nation. Unlike many governments who see the nascent industry as a menace, likely to risks and utilized primarily for illicit activities, Singapore discusses the potentials the sector has to provide.
Binance, one of the world’s most significant crypto exchanges in February 2020, declared that it has petitioned for a license to work as a bitcoin trading service in Singapore, in line with the MSA’s new PS Act. Another digital currency platform Sygnum contemplated appealing for a banking license with the MAS.
Back in July 2019, the country’s tax agency, the IRAS (Inland Revenue Agency of Singapore) in a draft document, recommended the privilege of goods and services tax (GST) for bitcoin and other digital tokens.