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Compliance and regulation for Marketplaces

Hi all!

I'm thinking of setting up a marketplace (in Southeast Asia, based out of Singapore if that matters) that acts as a marketplace for certain kinds of consumer goods. I will be:

  • Allowing sellers to list their products with me.
  • When a buyer wants to buy it, me (the marketplace) will receive the funds to our account for escrow.
  • Seller ships to us and we verify the authenticity of the goods.
  • When that's done, we ship to buyer and channel funds (minus fees) to seller.

In the European Union, the Payment Service Directive II would require any party that is (temporarily) in possession or in control of the customers' funds to register and be regulated as a PSP, or to contract a PSP for these functionalities. This is despite the business being just a marketplace and not providing any financial services so to say.

From what I've seen so far, it's unclear if similar regulation applies in Singapore (and neighbouring countries like Indonesia, Malaysia, Philippines), and if so, what the relevant laws to look at are.

How have those of you who did something similar managed this situation? Curious to hear your thoughts!

submitted by /u/gmkung
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