The Monetary Authority of Singapore (MAS) is set to receive expanded powers to regulate crypto financial products, as proposed in the Financial Institutions (Miscellaneous Amendments) Bill 2024 currently before the country's parliament. If passed, this bill could significantly impact crypto firms operating in Singapore.
Key provisions of the bill include expanded authority for MAS to issue directions to capital markets services license holders (CMSL holders) conducting unregulated business. The bill specifically points to Bitcoin futures and other payment token derivatives traded on overseas exchanges as examples of unregulated products that could pose contagion risks to regulated activities.
These expanded powers would allow MAS to enforce minimum standards and safeguards when CMSL holders and their representatives conduct unregulated businesses. This development follows the MAS' previous guidance on risk mitigation for conducting unregulated business with retail investors.
Cryptocurrency exchanges and Major Payment Institution (MPI) licensees may be affected by these changes. The bill's introduction coincides with MAS' recent efforts to discourage cryptocurrency speculation and its revised regulatory framework for stablecoins, which led to Circle and Ripple receiving MPI licenses.
Additionally, the bill includes provisions allowing MAS to compel individuals for interviews and make written statements, enter premises without a warrant, and obtain court orders to seize evidence. This also extends to approving agents appointed by foreign regulators to inspect Singaporean financial institutions.
This legislative move underscores Singapore’s proactive approach in creating a balanced regulatory environment for cryptocurrencies, aiming to protect investors while fostering innovation in the fintech and blockchain sectors.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.