Singapore’s MAS Refuses to Relax Rules for Crypto Companies Using Its “Regulatory Sandbox”

The letter had criticized Singapore for allowing crypto businesses to use its Fast and Secure Transfers (FAST) interbank payment system, calling the move “unwise.”

No crypto payment providers have been found eligible by the Singaporean Financial Services Authority (MAS) for its FinTech Regulatory Sandbox program.

The Monetary Authority of Singapore (MAS) responded to concerns raised in a letter published in the Financial Times about the lack of public consultation and oversight surrounding the adoption of cryptocurrencies by stating that it does not maintain a “crypto sandbox,” but rather a more general sandbox supporting experiments across the spectrum of fintech.

However, MAS noted that any firm with a legitimate bank account may use FAST, so crypto companies can participate as well, and that all transactions inside FAST are settled in fiat currency rather than cryptocurrency.

The Monetary Authority of Singapore (MAS) addressed the growing problem of malware scams in the country by distinguishing them from cryptocurrency fraud and arguing that they occur more frequently in the fiat economy and involve fraudsters gaining access to customers’ mobile devices and executing unauthorized transfers of fiat currencies through the banking system.

Singapore’s anti-money-laundering activities include issuing operating licenses to crypto firms with strong AML procedures.

The MAS plans to roll out these measures gradually over the course of the year, making Singapore a leading jurisdiction in terms of retail access to cryptocurrencies.

The Monetary Authority of Singapore (MAS) recently solicited public feedback on a suite of regulatory measures aimed at protecting retail consumers from the dangers of cryptocurrency.

The election of Tharman Shanmugaratnam as president of Singapore is notable since he is a former chair of the Monetary Authority of Singapore (MAS) and has always characterized cryptocurrencies as high-risk investments.

He had earlier issued a warning to Singaporean users, in his role as MAS chair, concerning the extreme volatility and riskiness of crypto assets in the year 2021.

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