Singapore’s bill expands control over crypto financial products
The Monetary Authority of Singapore (MAS) will receive expanded powers under legislation before the country's parliament. If passed, the changes could have a significant impact on crypto companies.
Among other things, the Financial Institutions (Miscellaneous Amendments) Bill 2024 “extends the powers of the MAS to issue directions to holders of Capital Market Services Licenses (`CMSL holders') carrying on unregulated business.
The bill states that CMSL holders may offer products that may pose cross-contamination risks to their regulated activities that are not regulated. He cites Bitcoin (BTC) futures and “other payment token derivatives traded on overseas exchanges” as examples. MAS has issued guidance on risk-prevention measures for conducting unregulated business with retail investors, but its powers are expanding:
“The FIMA Bill now allows the MAS to issue written directions on the minimum standards and safeguards that CMSL owners and their agents must take when conducting unregulated businesses.”
Cryptocurrency exchanges can be CMSL holders, as well as Master Payment Institution (MPI) licensees.
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MAS instituted various measures in November to discourage speculation in cryptocurrency investments. It also updated the regulatory framework for the stablecoin in August, after which Circle and Ripple received MPI licenses, bringing the total number of license holders to more than a dozen. Paxos was approved to issue a US dollar stablecoin in November, while MAS is actively exploring tokenization under Project Guardian.
Gerald Goh, founder and CEO of #crypto bank Signum Singapore, said @SECGov's approvals have more ripple effects on the industry than boosting #Bitcoin prices.
More on @ClaireHuangInc's piece below in the @straits_times. https://t.co/S9WLJ6GRM6
— Sygnum Bank (@sygnumofficial) January 11, 2024
Other provisions of the bill allow the MAS to compel individuals to appear for interviews and provide written statements. It allows MAS to enter premises without a warrant and obtain a court order to seize evidence. It also allows for the approval of agents appointed by foreign regulators to inspect Singaporean financial institutions.
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