The National Computer Board Act 1998 came into effect in July 1998.  It expands the National Computer Board's (NCB's) mandate to develop the Information Technology industry and provides the NCB the legal facilities to achieve
this objective.

The NCB released the Electronic Transactions ( Certification Authority) Regulations on 10 February 1999.  The Regulations  set  out  the  licensing  guidelines  for  companies  issuing on – line signatures and identities.  NCB is
designated  as  the  licensing  and regulatory body for such companies. With the introduction of the Internet Identity
Cards  ("Net IC s"), NCB's  function will also be to verify the validity and authenticity of a user's Net IC when used in
Internet  transactions.  Net  IC s  will  be  recognised  in  Canada,  Germany  and  Australia by the end of 1999 and
currently talk are underway with various parties in the US to achieve similar recognition there. 

At  present,  the  only  certification  company  in  Singapore  is  Netrust,  which  is  owned by NCB and Network for
Electronic  Transfers  (Singapore).  Now  that  it  is  to  be  a  regulator, NCB  will  sell its shares in the certification
company.  The licensing scheme is open to all who conform to the licensing standards and criteria, including foreign companies  which  are  based  in Singapore.  Digital signatures issued by companies who do not have a license will
not  be  recognised  by  law  as  a  matter  of course.  Unlicensed certification companies will also not enjoy limited
liability  protection  under  the  Electronic  Transaction  Act, which releases a certification company from being held responsible for losses suffered by a digital signature holder when there is fraud.