MAS Clarifies Singapore's Stance on Crypto Participation in FinTech Sandbox
Summary:
The Monetary Authority of Singapore (MAS) clarified that no businesses have qualified to participate in the FinTech Regulatory Sandbox framework as cryptocurrency payment providers. In response to criticism, MAS highlighted that Singapore does not have a dedicated "crypto sandbox" but supports a broad range of FinTech experimentation. Businesses with valid bank accounts, including crypto businesses, can access the FAST interbank payment system in fiat currencies. MAS aims to establish a stringent regulatory regime for retail access to cryptocurrencies and recently consulted the public on related measures. Tharman Shanmugaratnam, the former MAS chair, known for his concerns about crypto investments, has won the Singapore presidential race.
The Monetary Authority of Singapore (MAS) has clarified that no businesses have met the qualifications to participate in the FinTech Regulatory Sandbox framework as cryptocurrency payment providers. This statement comes in response to a letter published in the Financial Times criticizing the lack of public consultation and oversight on crypto adoption by the Singaporean government. MAS specified that Singapore does not have a dedicated "crypto sandbox," but rather a sandbox that supports various FinTech experimentation. The letter also criticized Singapore for allowing crypto companies access to the FAST interbank payment system, to which MAS clarified that all businesses with a valid bank account, including crypto businesses, can access the system as long as payments are made in fiat currencies, not cryptocurrencies. MAS further emphasized that the rising malware scam cases in Singapore are more prevalent in the fiat economy, contrary to claims linking them to cryptocurrencies. In efforts to combat money laundering, Singapore provides operational licenses to crypto businesses with robust Anti-Money Laundering (AML) controls, aiming to establish one of the strictest regulatory regimes in the world for retail access to cryptocurrencies. MAS recently carried out a public consultation on regulatory measures to address the risks posed by cryptocurrencies to retail customers. Tharman Shanmugaratnam, the former MAS chair who has expressed concerns about crypto investments, has won the Singapore presidential race. He has previously described cryptocurrency assets as highly volatile and risky investment products.
Published At
9/8/2023 8:32:00 AM
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