Singapore takes a cautious approach towards crypto service providers

The latest sign of Singapore's cautious acceptance of the crypto economy is the passage of legislation strengthening controls on cryptocurrency service providers.

On Tuesday, the Singapore House of Commons passed legislation that would require all virtual asset service providers situated in the city-state to operate only after receiving a license from the authorities.

The new regulation is included in the Financial Services and Markets Act. The measure strengthens the authority of the regulatory body, the Monetary Authority of Singapore. Only the aforementioned regulatory body would be allowed to provide licenses to crypto service providers.

In the past, Singapore seemed to have a very lenient approach towards cryptocurrencies and other virtual digital assets. The city-state aimed toward becoming a hub for web3 innovation and in turn had lenient policies to attract start-ups and other companies working in the space. But it has been observed that the city-state is changing its approach towards cryptocurrency and other virtual digital assets.

This decision by the Singaporean government is not an isolated example of its caution towards the cryptocurrency industry. Recently the city-state passed a law that would effectively prohibit crypto businesses from advertising to the general public, illustrating the country's cautious stance.

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