A bill currently under consideration in Singapore’s parliament aims to grant the Monetary Authority of Singapore (MAS) increased regulatory powers, potentially impacting crypto-related businesses if enacted.
The Financial Institutions (Miscellaneous Amendments) Bill 2024 contains provisions that would enhance MAS’s authority to issue directives to capital markets services licence holders (CMSL holders) engaged in unregulated activities. The bill highlights concerns about CMSL holders offering unregulated products that could pose contagion risks to their regulated operations, citing examples such as Bitcoin futures and payment token derivatives traded on foreign exchanges.
“The FIMA Bill will now allow MAS to issue written directions on the minimum standards and safeguards that should be in place when CMSL holders and their representatives conduct unregulated businesses.”
While MAS has previously provided guidance on risk mitigation for unregulated business with retail investors, the proposed changes in the bill would empower MAS to issue written directives specifying minimum standards and safeguards for CMSL holders and their representatives conducting unregulated businesses.
Entities like cryptocurrency exchanges, along with Major Payment Institution (MPI) licensees, fall under the category of CMSL holders. In recent regulatory moves, MAS implemented measures discouraging speculation in cryptocurrency investments and revised its stablecoin regulatory framework. Notably, Circle and Ripple obtained MPI licences, bringing the total number of licence holders to over a dozen. In a related development, Paxos secured approval to issue a U.S. dollar stablecoin in November, and MAS is actively exploring tokenization through Project Guardian.
Gerald Goh, co-founder and chief executive of #crypto bank Sygnum Singapore, said the @SECGov approvals have a more nuanced impact on the industry beyond driving up #Bitcoin prices.
More in @ClaireHuangInc‘s piece in @straits_times below.https://t.co/S9WLJ6GRM6
— Sygnum Bank (@sygnumofficial) January 11, 2024
Additionally, the bill proposes other measures, allowing MAS to compel individuals to participate in interviews and provide written statements. It would grant MAS the authority to enter premises without a warrant and seek court orders to seize evidence. The legislation also empowers MAS to approve agents appointed by foreign regulators to inspect Singaporean financial institutions.
