Showing 17 Q&A Sections for "MAS"

  • MAS outlook on Cryptocurrency
    • Singapore
      • What is MAS' position on cryptocurrencies being used as an investment asset for retail investors?
        1.3 MAS stresses that DPT service providers should conduct themselves with the understanding that trading of DPTs is not suitable for the general public. These Guidelines set out MAS’ expectation that DPT service providers should not promote their DPT services to the general public in Singapore.
        FinReg
      • What is Singapore's outlook on the future of cryptocurrencies?
        “There may be a role for crypto in future finance that extends beyond pure speculation and illicit finance,” Tharman Shanmugaratnam, the chairman of the Monetary Authority of Singapore, said Wednesday at the Asia Financial Markets Forum. Stablecoins, for example, can have a role in traditional payment systems, though these digital assets need to be regulated for illicit finance activities including anti-money laundering, he said.
        FinReg
      • What is Singapore's outlook on CBDCs?
        While the MAS sees benefits (and the associated risks) in issuing a digital Singapore dollar, "the case for a retail Central Bank Digital Currency (CBDC) in Singapore is not urgent". As of October 2022, MAS is developing Project Orchid, a multi-year, multi-phase exploratory project examining the various design and technical aspects pertinent to a retail CBDC system for Singapore, from its functionalities to its interaction with existing payment infrastructures. Read more here. (
        FinReg
      • What is Singapore's outlook on Decentralised Finance (DeFi)?
        DeFi is already a growing reality, albeit nascent. Crypto tokens are bought and sold on decentralised exchanges, without the need for intermediaries to clear and record the trade. Another example is borrowing and lending, where anyone can lend and borrow directly to others via a liquidity pool managed by a smart contract. DeFi has the potential to yield significant economic and social benefits. By replacing intermediaries and central coun
        FinReg
      • What is MAS' view on the collapse of FTX?
        MAS reaffirms its stance that cryptocurrencies are highly risky, and are not for retail investors. 12. The most important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is hazardous. 13. Crypto exchanges can and do fail. Even if a crypto exchange is licensed in Singapore, it would be currently only regulated to address money-laundering risks, not to protect investors. This is similar to the approach
        FinReg
      • What is MAS' view on protecting users after the collapse of FTX?
        The Monetary Authority of Singapore (MAS) would like to address some questions and misconceptions that have arisen in the wake of the FTX.com (FTX) debacle. 2. A first misconception is that it was possible to protect local users who dealt with FTX, such as by ringfencing their assets or ensuring that FTX backed its assets with reserves. MAS cannot do this as FTX is not licensed by MAS and operates offshore .
        FinReg
      • Why did MAS treat Binance differently from FTX in relation to the Investor Alert List?
        MAS placed Binance on the Investor Alert List (IAL) because it had solicited Singapore users without a licence. With regard to FTX, there was no evidence that it was soliciting Singapore users specifically. 3. A second question is why MAS treated Binance.com (Binance) differently from FTX, specifically why it was placed on the Investor Alert List (IAL) while FTX was not. 4.
        FinReg
  • Overview of financial regulations in Singapore
    • Singapore
      • Relevant regulatory entities for Fund Managers in Singapore
        MAS and CAD. The Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) of the Singapore Police Force announced today that they will extend the Joint Investigations Arrangement to cover all offences under the Securities and Futures Act (SFA) and Financial Advisers Act (FAA).
        FinReg
      • What are the functions of MAS?
        To act as the central bank of Singapore, including the conduct of monetary policy, the issuance of currency, the oversight of payment systems and serving as banker to and financial agent of the Government. To conduct integrated supervision of financial services and financial stability surveillance. To manage the official foreign reserves of Singapore. To develop Singapore as an international financial centre.
        FinReg
  • Project Orchid
    • Singapore
      • What is Project Orchid?
        Project Orchid is a multi-year, multi-phase exploratory project examining the various design and technical aspects pertinent to a retail CBDC system for Singapore, from its functionalities to its interaction with existing payment infrastructures. Though MAS has assessed that there is no urgent need for a retail CBDC in Singapore at this point in time, MAS seeks to facilitate ongoing learning and advance the financial infras
        FinReg
      • Why is MAS developing Project Orchid?
        has assessed that there is no urgent need for a retail CBDC in Singapore at this point in time. The use cases for a retail CBDC are unclear, given that electronic payments in Singapore are pervasive, and households and firms in Singapore are already able to transact digitally in a fast, secure and seamless manner today.
        FinReg
      • What is Purpose Bound Money
        PBMs are specific to MAS' Project Orchid initative. refers to a protocol that specifies the conditions upon which an underlying digital currency can be used. PBMs are bearer instruments, with self-contained programming logic and transferrable between two parties without intermediaries.
        FinReg
      • What is the PBMs architecture?
        based architecture has four distinct components. 1. Digital currency backing PBM The digital currency backing a PBM serves as collateral for the PBM. When the conditions of a PBM are fulfilled, the underlying digital currency is released, and ownership is transferred to the target recipient. To be utilised as a backing digital currency, a digital asset needs to be a good store of value, unit of account and a medium of exchange.
        FinReg
      • How will PBMs be used under Project Orchid Phase 1?
        Usage Patterns Table This table examines how a person would use a PBM under different scenarios. Phase 1 features four trials: Government Vouchers: At the 2022 Singapore FinTech Festival (SFF 2022), DBS Bank Ltd (DBS) and GovTech’s Open Government Products Division (OGP) will test the use of PBM for disbursements to selected individuals. Trial participants can use RedeemSG vouchers at participating food and beverage out
        FinReg
      • Design considerations of PBMs
        In its report, MAS provides discussion around the design choices and factors that weigh into how a PBM might be implemented. These include: Interoperability Fungibility of digital SGD across issuers User Protection Operational Cost Digital Readiness Security AML/CFT 6.1 Interoperability It is critical that introducing PBM and additional service providers do not lead to fragmentation in the payment ecosystem. If each PBM provider runs its ow
        FinReg
      • What are the next steps for Project Orchid?
        The first phase of Project Orchid brought together different stakeholders in Singapore through a common initiative to understand the potential opportunities and drawbacks of introducing a programmable digital SGD.
        FinReg
  • Sanctions against Russia: Regulations for Financial Institutions
    • Singapore
      • How does MAS view the use of cryptocurrencies and DeFi to avoid financial sanctions?
        MAS has issued a circular to DPT service providers to underscore the importance of proper implementation of these controls, and the need to be vigilant against potential circumvention of the financial measures. 3. All FIs are required to demonstrate their compliance with the financial measures to MAS and are subject to MAS’ scrutiny and inspection. MAS will take appropriate regulatory actions against FIs found to have breached these financial measures.
        FinReg
      • What are the financial measures imposed by MAS in relation to Russian sanctions?
        Details of the measures outlined below can be found in MAS Notice SNR-N01. Under this notice, MAS directs that all financial institutions comply with the following: 3. PROHIBITION AGAINST DEALING WITH, AND FREEZING OF ASSETS OF, DESIGNATED BANKS AND DESIGNATED ENTITIES 4. PROHIBITION AGAINST ENTERING INTO FINANCIAL TRANSACTIONS OR PROVIDING FINANCIAL ASSISTANCE OR SERVICES, ETC., IN RELATION TO THE DELIVERY OF CERTAIN ITEMS 5.
        FinReg
      • What activities are exempt from the MAS prohibitions in relation to Russia?
        Payments for basic expenses and fees for certain services, as well as "specified transactions" are not prohibited under MAS Notice SNR-N01. "Paragraph 3" mentioned below refers to "the prohibition against dealing with, and freezing of assets of, designated banks and designated entities" in MAS Notice SNR-N01. 3.
        FinReg
  • Nature of accepting crypto payments
    • Singapore
      • How does MAS regulate businesses accepting crypto payments?
        'digital payment token transfer service' means the service of accepting digital payment token from one digital payment token address or account, whether in Singapore or outside Singapore, as principal or agent, for the purposes of transferring, or arranging for the transfer of, the digital payment token to another digital payment token address or account, whether in Singapore or outside Singapore "MAS currently regulates
        FinReg
  • Regulations on Trading and Investing in Crypto Assets
    • Singapore
      • What are MAS' proposed measures on investor protection related to crypto assets?
        MAS released a consultation paper in Oct 2022, seeking feedback for proposed regulatory measures that constitute as basic investor protection (for retail customers), in view of growing consumer interest in cryptocurrencies. 10. Importantly, DPT service providers are currently not regulated for safety and soundness, nor for investor protection. This is also the prevailing approach in most jurisdictions. 13. Going forw
        FinReg
  • Liquidity risks associated with cryptocurrency exchange services
    • Singapore
      • What are MAS' proposed regulatory measures to address DPT risks to customers?
        In light of recent cryptocurrency market turmoil, MAS released a consultation paper in October 2022 outlining its proposed regulatory changes for digital payment token (DPT) service providers. In this paper, it sets out observations, policy considerations, and proposed regulatory measures in key areas: (a) consumer access; (b) business conduct; and (c) technology. MAS reaffirms that it aims to develop a responsible digital asset ecosystem but discourages retail cryptocurrency speculation. Read m
        FinReg
  • Application for Business Trust Registration
    • Singapore
      • What are my options if my application to register a BT is refused by MAS?
        The trustee-manager may lodge an appeal to MAS within 30 days of the decision. Business Trusts Act 2004 The proposed trustee‑manager of any business trust who is aggrieved by the refusal of the Authority to register the business trust under subsection (2) may, within 30 days after it is notified of the decision, appeal to the Minister whose decision is final. (6) For the purpose of determining whether subsection (2) is satisfied in relation to the business trust — (a) r
        FinReg
  • Regulations for accepting crypto payments
  • Financial Services and Markets Bill 2022
    • Singapore
      • What is the Financial Services and Markets Bill 2022?
        Presently, MAS regulates the financial sector by entity and activity through various MAS-administered legislation. The Monetary Authority of Singapore Act (“MAS Act”) also contains provisions that impose requirements on different classes of financial institutions (“FIs”) across the financial sector in specific areas (“FI Related Provisions”).
        FinReg
      • How will the Financial Services and Markets Bill expand the scope of MAS powers to prohibit certain activities?
        . Under the FSM Bill, the MAS will introduce a more harmonised and expanded power to prohibit any person who is not fit and proper from engaging in any activity regulated by the MAS. The fit and proper criterion will be the sole ground on which a PO can be issued. This will provide the MAS with more discretionary powers in issuing POs, and potentially widen the scope of activities to which POs may apply.
        FinReg
      • How will the Financial Services and Markets Bill 2022 affect businesses dealing in crypto assets?
        MAS will impose licensing and ongoing requirements on VASPs to ensure that such VASPs have a meaningful presence in Singapore and that MAS has adequate supervisory oversight over them. AML/CFT requirements imposed on VASPs will be aligned with the requirements imposed on digital payment token service providers regulated under the PS Act.
        FinReg
      • Does the Financial Services and Markets Bill 2022 prohibit any types of activity?
        However, taking into consideration the parallel regimes under the SFA, PS Act and FAA, the FSM Bill also provides for the following exemptions from licensing (subject to any regulations which may be prescribed by the MAS), for a person who carries on a business of providing a DT service: (a) that is: (i) required to be licensed, approved or recognised under the SFA; or (ii) exempted from licensing, approval or recognition under the SFA, in respect of the carrying on of a business in a capital markets
        FinReg
  • Regulations for Fund Management Companies
    • Singapore
      • What can MAS direct a financial institution (FI) to do in the event of breach of financial requirements?
        (2) If the Authority is notified by the holder under paragraph (1) or becomes aware that the financial resources or adjusted net head office funds (as the case may be) of the holder have fallen below 120% of its total risk requirement, the Authority may — (a) direct the holder to immediately do one or more of the following: (i) cease any increase in positions, product financing, funds accepted for management and assets accepted
        FinReg
  • Registered Fund Management Company (RFMC): Registration Application
  • Nature of E-money
  • Regulations for E-wallets
    • Singapore
      • Proposed amendments for e-wallets
        MAS sets out in the consultation paper below the proposed amendments to limits currently imposed on each personal payment account that contains e money (“e-wallet”) issued by Major Payment Institutions. MAS invites comments from interested parties on the proposals set out in the consultation paper. CURRENT CAP ON E-WALLETS 2.1 Under the PS Act, the following limits currently apply on each e-wallet issued by MPIs: The maximum a
        FinReg
  • Nature of Stablecoins
    • Singapore
      • How are stablecoins regulated by the MAS?
        The regulatory frameworks for e-money based payment services and DPT services, including the differences in regulatory treatment, were developed before stablecoins emerged. Accordingly, MAS is currently reviewing whether the existing regulatory regime set out in the PS Act is relevant and appropriate going forward, with the possible advent of global stablecoins. MAS has proposed measures to regulate stablecoin issuers. So far, stablecoins do not fall under the definition of e-money. Upon an as
        Millennium Law LLC
      • What is Singapore's outlook on stablecoins?
        In October 2022, MAS proposed new measures to regulate stablecoin issuers. Stablecoins have the potential to be a medium of exchange to facilitate transactions in the digital asset ecosystem, provided they are well-regulated and securely backed. The current regulatory framework, which primarily addresses money laundering and terrorism financing risks, and technology and cyber risks, will be expanded to ensure that regulated stablec
        FinReg
  • Appointment of CMS licensee representatives
  • Nature of Securities
    • Singapore
      • Definition of Securities in Singapore
        Securities generally means shares, units in a business trust or debentures. The Securities and Futures Act 2001 (SFA) prescribes the following definition of securities. “securities” means — (a) shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership; (b) debentures; or (c) any other product or class of products as may be prescribed,
        FinReg