As payment service act goes into effect on 28 Jan 2020 in Singapore, one of the hottest questions we get this week will be how will this act affect our exchange operation.
One interesting section for payment service act to highlight will be for businesses not previously regulated, the Payment Services (Exemptions for a Limited Period of Time) Regulations prescribes a grace period for transition, whereby existing payment service providers are temporarily exempted from holding a licence under the PSA.
For Tokenize Xchange as a cryptocurrency/digital asset exchange that start our operation in late 2017, we are subjected on digital payment token service domain licence under new PSA ruling and we have filed for a notice on 28 Jan, also concurrently apply for the licence. We have a grace period of 6 months to continue our operation without disruption while waiting for our Major Payment Institution Licence result.
At this juncture, all our operations are able to resume without any disruption and we will keep our community first hand posted if there are any changes. We welcome and embrace such regulation to Singapore ecosystem as we believe this is a major step to heighten retail confidence in digital asset/cryptocurrency space. This direction is the same with our mission and vision to make a safe and trustable digital asset exchange, at the same time easy accessible for the public.
To let our community understand the Payment Service Act better, below is the illustration and types of regulated payment services domain under the new ruling:
In this new year of 2020, we are committed to comply with the new enforcement of PSA. We are working to improve our onboarding process to a much seamless user experience, start from March this year, for new Singaporean and Singaporean PR users, they will no need to face the hassle to submit digital copy of their proof of identity or proof of address, all identity and address verification can be done via Myinfo login. We are working to ensure robust KYC, AML and CFT framework is in place at the same time the whole approval process can take as fast as 5 minutes. This is one of the key things we want to focus on Q1 2020.