Recent changes in cryptocurrency regulation show that Southeast Asia is focused on the security of operations in the cryptocurrency market and compliance with AM / CFT rules. Regulators of the countries of the region are taking serious steps to introduce more comprehensive and reliable regulations, with an increasing emphasis on KYC and due diligence. In the prepared review, we provide some breaking news and brief analysis of the updated approach to the crypto activities regulation in Southeast Asia. This will be especially in handy for those entrepreneurs who want to establish a cryptocurrency company in Singapore, open a cryptocurrency exchange in Malaysia or Thailand.
Registering a crypto company in Singapore
Under the new Payment Services Act, digital token exchange providers must be authorized as a payment institution in Singapore. Authorized companies will be governed by AML / CFT rules. They commit themselves to a comprehensive approach to addressing the risks of violating the above rules.
With the enactment of the Law, the regulatory regime has become more clear, since it distinguishes between digital assets. Now, according to the new rules, investment tokens will fall under the definition of “digital payment token”.
The provision of payment token transfer services is subject to regulation, namely, the services of receiving them from one digital address or account, both in Singapore and abroad, in order to transfer them to another digital address or account, both in Singapore and for its limits.
Once you have registered a financial company in Singapore, for example, a cryptocurrency exchange, you will need to be licensed as a payment institution in Singapore.
Cryptocurrency company registration in Malaysia
The cryptocurrency market is actively discussing the news: from now on the initial offer of coins in Malaysia (ICO) is illegal. The Malaysian Securities Commission has decided that the best way to regulate digital tokens would be to regulate them as an Initial Exchange Offerings (IEOs).
Essentially, this means that all digital primary offers will need to be implemented through exchanges in the form of IEO.
The regulator justifies its decision by the need to provide a higher degree of transparency of the market and its more strict control.
Cryptocurrency company registration in Thailand
Working with an ICO in Thailand received a green light from a local regulator at the end of last year. Thailand's digital asset business rules are being actively reviewed and updated to better protect investors from risks.
For more detailed information and answers to your questions, you can order a consultation on the regulation of crypto activities in Southeast Asia from highly qualified and experienced lawyers of our company.