Singapore's new fintech order polarises wallets, crypto exchanges

The Singapore e-Payments Services Act regulates e-wallets and legitimises cryptocurrency exchanges. But not all fintechs are on board with the daily and yearly transaction caps of S$5,000 and S$30,000

Fintech startups have thrived in Singapore with little or no regulation for e-wallets and cryptocurrency exchanges

That’s all set to change with the Singapore e-Payments Services Act (PSA) coming into force on 28 January

Fintech platforms have largely welcomed the Act for legitimising the sector, but some aren’t happy with the new restrictions it brings

Amidst the mixed reactions, it is clear that the Act is an update to the law, and looks to promote consumer and industry confidence

Startups often thrive when there is little or no regulation, and Singapore-based cross-border payments company Nium is no exception. When it launched in 2014, Singapore did not have any regulation for fintech platforms. All Nium had to do was get a remittance licence from the financial regulator, the Monetary Authority of Singapore (MAS). Today, the fintech startup has enabled cross-border payouts to over 55 countries.

That’s all set to change for fintechs that are already operational, like Nium, and any future companies that set up shop in Singapore. On 28 January, the city-state rolled out the E-payments Services Act (PSA).

AUTHOR

Benjamin Cher

Based in Singapore, Ben covers news and stories from the hub of Southeast Asia. He covers the intersection of technology and business, and how it affects Singapore and Southeast Asia. Ben was previously a reporter at The Edge Singapore.

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