- The Monetary Authority of Singapore (MAS) is seeking to expand its investigative authority, targeting unregulated digital products like Bitcoin futures.
- The proposed Financial Institutions (Miscellaneous Amendments) Bill (FIMA) will impose stricter oversight on Capital Markets Services License holders engaging in unregulated ventures.
MAS Eyeing Enhanced Control Over Unregulated Digital Assets
In a decisive step to strengthen its grip on the digital assets market, the Monetary Authority of Singapore (MAS) has announced its intent to broaden investigative powers. This strategic move, primarily targeting unregulated digital products such as Bitcoin futures, marks a significant evolution in Singapore’s approach to cryptocurrency regulation.
As per the recent announcement, the MAS is introducing the Financial Institutions (Miscellaneous Amendments) Bill (FIMA) in parliament. This bill represents a critical juncture in Singapore’s regulatory framework, particularly focusing on entities holding a Capital Markets Services License (CMSL).
Tightening the Reins on CMSL Holders
The MAS’s spotlight on CMSL holders stems from the flexibility these entities currently enjoy in participating in unregulated ventures. Such activities include offering products like Bitcoin futures and payment token derivatives on foreign exchanges, which are not under the direct purview of MAS. This flexibility, however, brings inherent risks, particularly in terms of potential losses in unregulated sectors impacting the CMSL holder’s ability to meet obligations in regulated domains.
To address these concerns, the FIMA bill introduces a novel approach. It empowers the MAS to set minimum standards and safeguards for CMSL holders or their representatives when they engage in unregulated businesses. This move is a clear indication of MAS’s commitment to maintaining a balance between the autonomy of CMSL holders and the need to mitigate risks that could compromise the stability of regulated activities.
The MAS has previously provided guidance to CMSL holders on risk mitigation, particularly regarding transactions with retail investors. The new bill, however, takes a step further by laying down explicit directives to ensure higher levels of oversight and safety in the realm of unregulated digital asset activities.
MAS Continues to Fortify Crypto Regulation
In line with its recent initiatives to supervise the digital assets sector, the MAS has also updated its alert list to include non-custodial wallet imToken and BKEX crypto exchange. This action is part of MAS’s ongoing efforts to evolve and enhance the regulatory landscape for digital assets in Singapore, ensuring a secure and stable environment for both investors and financial institutions.