The Monetary Authority of Singapore (MAS) has introduced amendments to the Payment Services Act and its associated regulations to broaden the scope of payment services regulated by MAS and to impose requirements related to user protection and financial stability on Digital Payment Token (DPT) service providers. The amendments will be implemented in phases starting from April 4, 2024.

The amendments will bring the following activities under the regulatory purview of the Payment Services Act:

- Providing custodial services for DPT
- Facilitating the transfer of DPT between accounts and the exchange of DPT, even if the service provider does not own the funds or DPT
- Facilitating cross-border fund transfers between different countries, even if the funds are not received or collected in Singapore

The amendments empower MAS to impose requirements on DPT service providers related to anti-money laundering and countering the financing of terrorism, user protection, and financial stability.

Transitional arrangements will be provided for entities currently conducting activities expanded under the Payment Services Act. These entities must notify MAS within 30 days if they wish to continue their activities temporarily during MAS's review of their license applications and submit their license applications within six months from April 4, 2024.

Within nine months from April 4, 2024, license applications must be accompanied by a formal attestation report completed by a qualified external auditor regarding the entity's business activities and compliance with anti-money laundering and countering the financing of terrorism regulations. Entities that do not meet these requirements must cease relevant activities after the amendments come into effect.

The amended Payment Services Regulations will come into effect within six months from April 4, 2024.