Proposed Bill May Bolster Singapore’s Monetary Authority Control Over Crypto Firms
Summary:
The Monetary Authority of Singapore (MAS) could be granted extended powers under the proposed Financial Institutions (Miscellaneous Amendments) Bill 2024, leading to significant changes for cryptocurrency firms. The bill seeks to broaden MAS' capabilities to regulate business conduct by capital market services license holders, including cryptocurrency exchanges and Major Payment Institution license holders. Additionally, it could also grant MAS further authority to mandate personal interviews, seize evidence, and authorize foreign agents to inspect domestic financial institutions.
Under a new proposed law currently before the nation's parliament, the Monetary Authority of Singapore (MAS) could be granted enhanced powers, potentially causing notable changes for cryptocurrency firms. The highlight of the Financial Institutions (Miscellaneous Amendments) Bill 2024 is the expanded jurisdiction of the MAS to issue directives to capital market services license holders (CMSL holders) engaging in unregulated business. The bill indicates that CMSL holders could provide unregulated offerings that may introduce contagion risks to their regulated activities, using Bitcoin (BTC) futures and "other payment token derivatives traded on overseas exchanges" as examples.
The MAS has previously issued advice on risk mitigation for unregulated transactions with retail investors; however, this bill increases its powers. Under the proposed FIMA Bill, the MAS would be enabled to issue mandates regarding the minimum standards and protections for unregulated business operations by CMSL holders and their associates.
CMSL holders may include cryptocurrency exchanges and Major Payment Institution (MPI) license holders. The MAS implemented several steps in November to discourage speculative cryptocurrency investments. A regulatory framework revision for stablecoin was completed in August, following which Circle and Ripple obtained their MPI licenses, bringing the total number of license holders to over 12. In November, approval was given to Paxos to release a stablecoin tied to the U.S. dollar. Concurrently, the MAS is investigating tokenization under Project Guardian.
The proposed bill also consists of clauses that would give the MAS the power to mandate people to attend interviews and deliver written statements. It would grant MAS the authority to enter locations without a warrant and secure court orders to seize evidence. Additionally, the MAS will be empowered to authorize agents designated by overseas regulators to inspect Singapore's financial institutions.
Published At
1/12/2024 11:30:00 PM
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