MAS outlook on Cryptocurrency
What is the FinTech Regulatory Sandbox?
The FinTech Regulatory Sandbox enables financial institutions and FinTech players to experiment with innovative financial products or services in a live environment but within a well-defined space and duration.
Depending on the experiment, MAS will provide the appropriate regulatory support by relaxing specific legal and regulatory requirements prescribed by MAS, which the sandbox entity will otherwise be subject to, for the duration of the sandbox.
The sandbox will include appropriate safeguards to contain the consequences of failure and maintain the overall safety and soundness of the financial system.
Upon successful experimentation and on exiting the sandbox, the sandbox entity must fully comply with the relevant legal and regulatory requirements.
(There are three sandbox options:)
For more complex business models where customisation is required to balance the risks and benefits of the experiment.
Fast-track approvals for activities where the risks are low and well understood by the market. Rely on disclosures and pre-determined rules.
One-stop assistance in areas of regulatory support and financial grant. Available from 1 January 2022.
"A successful use case of the Sandbox is Propine, a Singapore-based digital asset custody provider. Propine announced on 11 January 2021 that it had been awarded a capital markets services licence from the MAS as it had graduated from the MAS FinTech Regulatory Sandbox.
[Source: Chambers and Partners, last revised on 17 Jun 2021]
According to MAS (Speeches)
last revised on 9 Nov 2021
...We will facilitate experiments for blockchain and DeFi innovation through regulatory sandboxes. Five years ago, MAS launched the FinTech Regulatory Sandbox, to support live experimentation of technology innovations. Two years ago, we enhanced it with Sandbox Express, so that businesses can begin market testing of low risk activities in a pre-defined environment faster.
MAS will enhance its regulatory sandbox with Sandbox Plus. We will broaden participation to early adopters of technology, in addition to first movers. We will provide financial grants to first movers of innovation, to support their technology, human capital, and market development. We will enrol eligible applicants in Deal Fridays, a programme jointly organised by MAS and Enterprise Singapore, where they will gain access to the investor community.