The planned Financial Institutions Bill 2024 might give the Monetary Authority of Singapore more authority to oversee crypto companies.
Parliament has the opportunity to grant the Monetary Authority of Singapore (MAS) new powers via the passage of the Financial Institutions (Miscellaneous Amendments) Bill 2024. Companies dealing in cryptocurrencies, especially those with Capital Markets Services Licenses (CMSLs), are likely to feel the effects of this new law.
Holders of CMSLs who participate in unlicensed commercial operations are the intended targets of the law. The new law gives MAS the authority to make rules and regulations for these kinds of operations. This is a significant move since CMSL holders often deal in unregulated payment token derivatives like Bitcoin futures and other similar products, which are traded on foreign exchanges. This legal reaction is a direct result of the concerns raised about the possible hazards these items represent to their regulated activity.
When dealing with individual investors in unlicensed firms, the MAS has issued guidelines for risk mitigation in the past. But the new law goes beyond that by giving MAS the power to issue formal orders enforcing minimal standards. With this update, the authority is reiterating its intention to keep its regulatory framework strong, even while the cryptocurrency market and Major Payment Institution (MPI) licensees undergo constant change.
In response to previous steps taken by the MAS to limit cryptocurrency speculation, this development follows suit. To put a stop to such rumors, the MAS instituted a number of measures in November. In addition, Circle and Ripple were granted MPI licenses when the MAS amended the legal framework for stablecoins in August. In November, Paxos was also given the go-ahead to launch a stablecoin pegged to the US dollar. The MAS has taken the initiative to manage the dangers linked to digital currencies, and these developments show that.
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