Singapore MAS Proposes Regulatory Changes

Singapore’s de facto central bank has proposed a raft of regulatory changes, designed to create more favorable conditions for blockchain decentralized exchanges.

The Monetary Authority of Singapore published a consultation paper this week, outlining measures for improving on the current recognized market operators regime to take account of new developments around the blockchain and emerging technologies.

The proposals look to expand from the current single-tier regulatory system to a three-tier system, which will ease conditions for smaller exchanges and new entrants to the market.

In the consultation paper, MAS discussed the need for developing the RMO regime to take account of new, emerging business models around blockchain technology.

“MAS has observed the emergence of new business models in trading platforms, including trading facilities that make use of blockchain technology, or platforms that allow peer-to-peer trading without the involvement of intermediaries.”

“As the current RMO regime has been in place since 2002, it is timely to review to the regulatory framework for market operators to ensure that it continues to meet the demands of the changing landscape.”

Tier 3 of the proposed structure is aimed exclusively at smaller market operators, with a view to creating a supervised environment for implementing new technologies and rolling out P2P and blockchain technology.

“This new tier is designed to facilitate new entrants that develop solutions for wholesale market participants, or market operators that have reached the end of their sandbox tenure and are commercially viable, but whose businesses are not able to meet the requirements of the existing RMO regime.”

MAS has set June 22 as the deadline for representations on the proposals from interested stakeholders. If approved, they could further help cement Singapore’s role as one of the more supportive environments in the region towards the technology.

Further, it could serve as a test case for deregulation, and updating existing laws to better reflect the needs of the growing blockchain sector.

At a time when financial regulators around the world are identifying the most effective approach to supporting new blockchain businesses, the Singapore approach will act as a case study for other governments, central banks and regulators in deciding how to proceed with their own regulation.



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