Payment Services Act – What Every Crypto User Should Know

When working with Payment Services Act, a regulatory framework that governs crypto‑related businesses, sets licensing standards, and enforces anti‑money‑laundering rules. Also known as PSA, it shapes how cryptocurrency exchanges, platforms that match buyers and sellers of digital tokens and virtual asset service providers, companies offering custody, transfer, or advisory services for crypto assets operate legally. The act demands strict AML/KYC procedures, capital reserves, and ongoing reporting, turning what used to be a gray zone into a clear, enforceable set of rules.

Key Pieces of the Puzzle

Understanding the Payment Services Act means tying together a few core concepts. First, digital asset licensing, the process of obtaining a government‑issued permit to offer crypto services is now mandatory for any firm handling customer funds. Without a license, an exchange can face fines, asset freezes, or shutdowns. Second, AML compliance, the suite of checks that prevent money laundering and terrorist financing has become a daily operational task—automated transaction monitoring, risk scoring, and regular audits are no longer optional. Third, the act introduces the notion of a “trusted service provider,” allowing vetted firms to share data with regulators, which speeds up investigations and builds market confidence. Finally, the PSA’s scope reaches beyond Singapore; many jurisdictions are borrowing its structure, making it a global benchmark for crypto policy.

Below you’ll find a curated set of articles that break down these topics in plain language. Whether you’re checking the security of a new exchange, sizing up the risks of a token airdrop, or figuring out how OFAC sanctions intersect with local rules, the posts cover practical steps, real‑world examples, and the latest regulatory updates. Dive in to see how the Payment Services Act reshapes the crypto landscape and what actions you can take to stay compliant and protected.