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Cryptocurrency brought under AML rules in Singapore

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Coinpip, the Singaporean cryptocurrency provider, has closed down its operations, in spite of declaring strong growth potential after the launch of its crypto-to-fiat system. It has suspended its operations since February 2020, claiming that it plans to focus on analyzing licensing requirements under the Singapore Payment Services Act. 

Crypto Mak tweeted regarding the event:

A note on Coinpip’s website states that they will not be entertaining new transactions, but will be completing the remaining ones until further notice. CoinPip is a cryptocurrency transfer platform that assists users to purchase, sell and use virtual currencies as payment for remittances, aiding businesses to transfer money to their employees, freelancers, and contractors across the world. 

It exhibits its returns and exchange portal crafted in such a way to ease the process of regular payouts and remittances while avoiding bank transfer fees and forex charges. Coinpip had been working on launching various projects prior to shutting down. Recently, it incorporated the crypto to fiat ability in the system and also extending its services to more than 40 countries. 

Coinpip also facilitated its customers by allowing payment in Bitcoin through mobile devices in Hong Kong and Indonesia, ultimately introducing it throughout South-East Asia. CoinPip’s shutting down happened as a result of the Monetary Authority of Singapore (MAS)’s step to update its regulatory framework for crypto-related activities, including digital payments. The law quoted in its statement, Payment Services Act (PSA), covers all virtual currency businesses and exchanges based in Singapore, bringing CoinPip and its peers under anti-money laundering and counterterrorist-financing rules.

It is mandatory for crypto businesses to first get registered and then apply for a license to function. Operators are forced to divulge their dealers’ identities in dubious activities. With Singapore shaping its cryptocurrency regulation, there was no choice for many cryptocurrency service providers but to close down their operations. 

Singapore’s PSA law is related to Europe’s Fifth European Anti-Money Laundering Directive (AMLD5), which went into action earlier this year. The legislation is remarkable since it represents the European Union’s first attempt to regulate cryptocurrency activities at EU-level explicitly.