The Monetary Authority of Singapore (MAS) is set to receive expanded powers under a new bill currently before the country’s parliament. This could have a significant impact on cryptocurrency firms. The Financial Institutions (Miscellaneous Amendments) Bill 2024 aims to expand MAS’ powers to issue directions to capital markets services licence holders (CMSL holders) that conduct unregulated business.
CMSL holders have the ability to offer unregulated products that could potentially pose contagion risks to their regulated activities. Bitcoin futures and other payment token derivatives traded on overseas exchanges were cited as examples in the bill. The MAS has previously issued guidance on risk-mitigating measures for conducting unregulated business with retail investors, but the new bill seeks to expand its powers.
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. Cryptocurrency exchanges may be CMSL holders, as well as Major Payment Institution (MPI) licensees.
In November, the MAS instituted a range of measures to discourage speculation in cryptocurrency investments. It revised its regulatory framework for stablecoin in August, after which Circle and Ripple received MPI licenses, bringing the total number of license holders to over a dozen. Paxos was approved to issue a U.S. dollar stablecoin in November. The MAS is also actively exploring tokenization under Project Guardian.
Other provisions of the bill would allow the MAS to compel individuals to appear for interviews and make written statements. It would also allow the MAS to enter premises without a warrant and obtain court orders to seize evidence. Furthermore, the bill will enable the MAS to approve agents appointed by foreign regulators to inspect Singaporean financial institutions.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇸🇬 🇮🇳 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Monetary Authority of Singapore, Ripple, Huobi, Paxos, Circle |
| Currencies | Bitcoin, Unidef |
| Securities | None |
