What is
Payment Services Act in Singapore
?
The Payment Services Act or PSA is a Singaporean law that came into force in January 2020. It regulates payment systems and payment services providers based in the city-state.
Payment services is a fast growing industry, and new payment solutions are making digital payments faster, cheaper and more convenient for consumers. These developments have also given rise to new risks, making it necessary for the MAS to review and modernise our payments regulatory framework. The PS Act came into force on 28 January 2020, and combines requirements that were previously in the PS(O)A and the MCRBA into a single piece of legislation.
The PS Act widens MAS’ regulatory scope to address new risks posed by existing payment services and to include new payment services. With a modular and risk-based regulatory approach, the PS Act is a flexible regulatory framework that reduces the impact of a failure of a payment service provider while promoting a progressive payments sector in Singapore.
Crypto assets, tokens, and VASPs are under the scope of the PSA. The PSA provides a framework for risk assessment and risk mitigation. It also requires VASPs to comply with AML/CTF policies and to apply for a license.
Scorechain recently released guidance on the PSA in Singapore and explains how VASPs can comply with it.
Discover more about blockchain analytics, crypto and compliance with our Glossary.
About Scorechain
Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 40 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.
Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, and Tron with TRC10 and TRC20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.
