The Monetary Authority of Singapore (MAS) responded to a letter published in the Financial Times, criticizing the Singaporean government for lack of public consultation and oversight on crypto adoption. The response clarified several points, including the purpose of its FinTech Regulatory Sandbox framework, access to its FAST interbank payment system, and its stance on the prevalence of malware scam cases.
MAS clarified that no businesses have qualified to participate in its FinTech Regulatory Sandbox as cryptocurrency payment providers. Contrary to the criticism, MAS noted that the country does not have a “crypto sandbox,” but rather a sandbox that supports a broad range of fintech experimentation.
The letter criticized Singapore for “unwisely” allowing crypto companies’ access to its Fast and Secure Transfers (FAST) interbank payment system. MAS clarified that all businesses with a valid bank account, including crypto businesses, can access the FAST system, as payments through FAST are in fiat currencies, not cryptocurrencies.
The regulator addressed the concern over the rising malware scam cases in Singapore, stating that such scams, which involve fraudsters taking control of customers’ mobile devices and effecting unauthorized transfers through the banking system, are more prevalent in the fiat economy and are not related to cryptocurrencies.
MAS noted that Singapore provides operational licenses to crypto businesses that can showcase robust AML controls. As these measures are progressively implemented from the end of this year onwards, Singapore will have one of the strictest regulatory regimes in the world governing retail access to cryptocurrencies.
MAS recently consulted the public on a suite of regulatory measures to mitigate the risks posed by cryptocurrencies to retail customers. This indicates the government’s ongoing efforts to involve the public in decision-making processes.
The response from MAS clarifies the Singaporean government’s position and efforts in regulating cryptocurrency businesses and ensuring the safety of its financial systems. With robust AML controls, public consultations, and a comprehensive fintech sandbox, Singapore continues to balance innovation with risk management in the rapidly evolving crypto landscape.
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