Singapore has introduced a new bill in its parliament that aims to regulate crypto financial products, among other financial institutions, by providing more powers to a local regulator.
The Financial Institutions (Miscellaneous Amendments) Bill 2024, a new bill in the Singapore parliament, has attracted attention from the financial services industry. The bill would empower the Monetary Authority of Singapore with more powers. Eventually, it could also impact crypto financial products. The bill specifies rules for capital markets services license (CMSL) holders.
“The FIMA Bill will now allow MAS to issue written directions on the minimum standards and safeguards that should be in place when CMSL holders and their representatives conduct unregulated businesses,” says the bill. It also mentioned risks from unregulated products, which eventually affected regular users.
The bill may also become a positive development for the crypto industry after unregulated players are mandated to get licenses. Moreover, the Monetary Authority of Singapore will also be able to ensure firms do not misuse consumer funds. As a result, crypto investors would be able to trade and invest in a more regulated manner.
Moreover, the Monetary Authority of Singapore has always been at the forefront of crypto regulations or measures. Crypto regulations in Singapore took a critical step forward when the regulator released a framework for stablecoins in 2023. Hence, crypto adoption in Singapore is also in a much better position than in other countries.
Crypto adoption in Singapore was also boosted through other measures. For instance, private organizations like the Red Cross enabled crypto donations in 2023. They did so by partnering with a crypto payments firm. Meanwhile, the Monetary Authority of Singapore also recently started central bank digital currency trials. The trials have also recently progressed the position of Singapore as a pro-active crypto-friendly country.
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