Part 7/10:

Regulation plays a crucial role in maintaining a secure environment for cryptocurrency trading. Under the Payment Services Act, exchanges offering cryptocurrency trading are classified as digital payment token service providers and must adhere to anti-money laundering and counter-terrorism financing standards.

At the same time, jurisdictions like Singapore have advanced regulatory infrastructure. The Monetary Authority of Singapore (MAS) has established a regulatory sandbox—an environment where new blockchain-based platforms can operate under supervision—to foster innovation while managing risks. For instance, the Singapore Exchange (SGX)'s Xtra platform graduated from the sandbox and operates as a regulated blockchain-capital markets platform under the Securities and Futures Act.