Veriscope Regulatory Recap - 1st to 15 April 2024

• With its new crypto regulatory update, Singapore is mandating strict custody and transaction rules.

• Brazil, on the other hand, is becoming more crypto-friendly, having started recognizing cryptocurrencies as a valid payment method.

• Both countries reflect the dynamic, evolving landscape of global crypto regulation.

In this edition of the Veriscope Regulatory Recap, we examine the latest crypto regulatory developments in Singapore and Brazil. 

Both countries are revising their attitudes toward cryptocurrencies, which is reflected in their regulatory responses. This shift is clearly evident from their new measures.

Singapore Tightening Up Its Crypto Regulations

Until a series of failures rocked the crypto industry in 2022, most rankings identified Singapore as the most crypto-friendly country.

Even founders who moved to Singapore, drawn by its crypto-friendly measures initiated pre-2022, found themselves questioning their decisions.  

Recently, Singapore’s Central Bank, the Monetary Authority of Singapore (MAS), is rolling out new updates to the Payment Services Act to tighten its grip on the crypto landscape. 

These updates extend to crypto custody, token payments or transfers, and cross-border payments, even if transactions don’t physically touch Singapore’s financial system.

Key among these regulations is the requirement for service providers to keep customer assets separate from their own, with a hefty 90% of these assets to be stored in cold wallets to enhance security. 

Additionally, the MAS is keen on preventing any single person from having too much control over these assets, favoring multi-party computation (MPC) wallets, which require a collaborative effort for transactions.

Moreover, the MAS is stepping in to protect retail customers by banning them from certain activities, such as crypto staking or lending, which are gaining attention from regulators worldwide.

Brazil Harnessing New Affection for Crypto

On Brazil’s part, it was never really considered among the top five crypto-friendly countries. Yet, it has initiated several measures that challenge crypto enthusiasts' notions about the country.

It is also among the major global economies (G20 Member Countries) that have rolled out crypto regulations.

Continuing with its crypto-friendly measures, President Jair Bolsonaro recently green-lit a bill that recognizes cryptocurrency as a valid payment method. Although this law, set to take effect in six months, does not declare cryptocurrencies as legal tender, it does incorporate them into the legal framework.

“With regulation, cryptocurrency will become even more popular.” 

- Sen. Iraja Abreu

Under this new law, crypto assets classified as securities will fall under the Brazilian Securities and Exchange Commission’s watch, while a designated government body will oversee other digital assets.

In conclusion, Singapore’s and Brazil’s approaches to crypto regulations prove once again that the crypto industry as a whole is a continuously evolving space and can change significantly within a few years, from narrative to various national governments’ approach to them. 

Interesting Reads

The Visual Guide on Global Crypto Regulatory Outlook 2024

Almost 70% of all FATF-Assessed Countries Have Implemented the Crypto Travel Rule

‍About Veriscope

‍Veriscope, the compliance infrastructure on Shyft Network, empowers Virtual Asset Service Providers (VASPs) with the only frictionless solution for complying with the FATF Travel Rule. Enhanced by User Signing, it enables VASPs to directly request cryptographic proof from users’ non-custodial wallets, streamlining the compliance process.

For more information, visit our website and contact our team for a discussion. To keep up-to-date on all things crypto regulations, sign up for our newsletter and follow us on X (Formerly Twitter), LinkedIn, Telegram, and Medium.