Cyber security companies will have to apply for a yearly license to operate in Singapore

Singapore Cyber Security Authority (CSA) confirmed that any tech company offering cybersecurity services or products should be licensed in order to perform their operations with no legal issues. According to this report, the Authority is granting a six months grace period to comply with this legislation.

In case of failing to accomplish the legal requirements, companies could be fined or even shut down.

The provision includes companies that will be engaged in monitoring and pentesting services, in addition to covering external providers and resellers of cybersecurity services that are licensed to operate in the country.

The government agency announced that this new provision will come into force from this Monday, April 11, as a postulate of the Singapore Cybersecurity Act.

With this new law, authorities seek to prioritize consumer protection, ensuring that service providers meet their commitments to users and establishing mechanisms for the protection of personal information.

On the legal consequences that could face those entities that do not comply with this legislation, the maximum penalties could reach two years in prison, in addition to the payment of fines of between SG $36,000 and $ 50,000. In addition, the license payment will range from SG$500 to $360 for small and medium-sized businesses, and between SG$700 and $1,000 for large corporations.

The license will be valid for only two years. For individuals or companies submitting their applications before April 11, the authority will offer a 50% discount.

To learn more about information security risks, malware variants, vulnerabilities and information technologies, feel free to access the International Institute of Cyber Security (IICS) websites.