The Monetary AuthoritySingapore of (MAS) is on the verge of obtaining enhanced regulatory powers. This development is outlined in the newly proposed Financial Institutions Miscellaneous Amendments Bill 2024.
According to report, this bill aims to augment the authority of MAS, particularly in direct capital markets services license holders and CMSL holders engaged in unregulated business activities.
This enhancement is important because CMSL holders often deal in unregulated products, which could introduce systemic risks to their regulated operations.
Notably, the bill references Bitcoin futures and other payment token derivatives traded on international exchanges as prime examples of such products.
Moreover, MAS has already provided guidelines to reduce risks in dealing with unregulated businesses, especially when it involves retail investors. However, the new bill seeks to solidify MAS’s role by granting it the power to issue written directives.
Note that cryptocurrency exchanges are among the entities that could be affected by these changes, as they often hold CMSL or Major Payment Institution (MPI) licenses. The MAS has already taken steps to check risky activities in cryptocurrency investments, evident in the measures introduced in November.
Furthermore, the regulatory landscape for stablecoins underwent revisions in August, which led to Circle and Ripple acquiring MPI licenses.
In addition to crypto-specific measures, the bill proposes broader regulatory powers. These include telling individuals to participate in interviews, submitting written statements, and allowing MAS to conduct inspections without a warrant.
Also Read: Singapore MAS Tightens Crypto Rules For Retail Investors
