The Monetary Authority of Singapore plans to unify the regulatory framework in the payment field and give the green light to the development of Bitcoin

Currently, the payment sector is in an innovative stage. However, no matter how novel the idea is, it will always face regulatory barriers, which is likely to hinder its future development. The Singapore government is aware of this and intends to simplify the regulatory framework to accommodate payment innovation. In addition, Singapore will set up a National Payments Committee (NPC) to develop common standards for competing service providers in the payment field.

Regulatory uncertainty is a big concern for most fintech and Bitcoin startups. Startups want to share their ideas and technologies, but local governments may not agree. However, in Singapore, this situation will soon no longer exist. The Monetary Authority of Singapore (MAS) intends to merge legislative systems to achieve regulatory clarity.

More specifically, their plan is to combine the Payment Systems Act and the Money Changing and Remittance Business Act. Both acts are centered around the store of value and remittance businesses. Innovation in the payments space generally touches on both acts, so creating a unified regulatory framework is inevitable.

MAS has another reason for this plan. If their proposal is passed, all local payment services will be regulated under the same legal framework, combining licensing, regulations and supervision. This means that all startups and businesses will have to follow the same rules. Interestingly, these businesses also include third-party cryptocurrency providers.

In this way, one license can cover most payment businesses, and startups and companies will no longer be forced to apply for multiple licenses at the same time. In addition, this new framework also involves consumer protection, anti-money laundering (AML) and cybersecurity. Singapore will also set up a National Payment Committee (NPC) to manage this new unified framework to ensure its long-term development.

All in all, this plan is good for the development of Bitcoin in Singapore. The payment sector is accelerating, and a unified regulatory framework will benefit all parties. Moreover, such a framework will make it easier for Bitcoin companies to apply for licenses, thereby further legitimizing their business models.