When you trade crypto, use a wallet, or get an airdrop, you're interacting with systems shaped by the Payment Services Act, a regulatory framework that defines who can offer payment services and how they must protect users. Also known as PSA, it’s not just about banks—it’s the reason some exchanges shut down, why some airdrops exclude U.S. users, and how your money stays (or doesn’t stay) safe. Countries like Singapore and Japan adopted it first, but its influence now reaches every crypto platform that touches real money.
This law doesn’t just target big players—it forces every service handling digital assets to prove they know who their users are, where the money comes from, and how they prevent fraud. That’s why Dasset in New Zealand collapsed: they couldn’t keep banking access after regulators demanded stricter controls. It’s why RocketSwap doesn’t exist—no licensed entity would operate without compliance. And it’s why the Impossible Finance airdrop blocked U.S. users: U.S. financial rules don’t line up with how PSA defines a payment service. Even meme coins like UPDOG or AAAHHM can’t escape this reality—exchanges listing them must comply, or risk fines and shutdowns.
The FATF greylist, a global list of countries with weak anti-money laundering rules. Also known as financial watchlist, it’s directly tied to the Payment Services Act because exchanges must treat users from these countries differently—often blocking them entirely to avoid penalties. If you’re in a FATF greylisted country, your ability to trade, withdraw, or even claim an airdrop is limited—not because of the coin, but because the platform must follow PSA rules. The same goes for businesses in India: they can hold crypto, but can’t accept it as payment because the Payment Services Act’s spirit extends into local tax and reporting laws. Even token burns and DeFi money legos aren’t immune—when protocols like Uniswap or Aave connect to real-world payment rails, they need to be licensed or risk being cut off.
What you’ll find below are real stories of platforms that failed, airdrops that vanished, and tokens that never stood a chance—not because they were bad ideas, but because they ignored the rules that keep the system from collapsing. Some posts expose scams. Others show how compliance killed good projects. All of them tie back to one thing: the Payment Services Act isn’t a footnote. It’s the invisible hand shaping every trade, every wallet, every coin you touch today.
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