[NEWS] Monetary Authority of Singapore to expand powers over crypto assets under new bill

The Financial Institutions Amendment Bill 2024 (FIMA Bill), which includes an expansion of the powers of the Monetary Authority of Singapore (MAS), has been introduced in Parliament. If the revised bill is passed, it is expected to have a significant impact on cryptocurrency-related companies.

The FIMA Bill's provisions state that "the powers of MAS to give directions to CMSL (Capital Markets Services License) holders who conduct unregulated business" are expanded.

The bill states that CMSL holders will be able to offer unregulated products that may pose a risk to regulated activities. Items related to such unregulated products include "Bitcoin futures products and other token derivatives traded on overseas exchanges."

MAS has already issued guidance on risk mitigation measures for conducting unregulated business with retail investors, but its powers will be further expanded. Specifically, the FIMA Bill will enable MAS to issue written instructions on minimum standards and safeguards that CMSL holders and their representatives must take when conducting unregulated business.

Already moving forward with stablecoin regulations

In November last year, the MAS took various measures to prevent cryptocurrency speculation.

In addition, the regulatory framework for stablecoins was revised in August, and US companies Circle and Ripple obtained MPI licenses. There are now more than a dozen licensees. In addition, Paxos was approved to issue a stablecoin pegged to the US dollar in November, and MAS is also actively considering tokenization through Project Guardian, which promotes the use of DeFi and other technologies.

Other provisions of the bill would allow MAS to summon individuals for questioning and to compel them to make written statements. This would allow MAS to enter premises without a warrant and obtain court warrants to seize evidence. It would also allow MAS to approve agents appointed by foreign regulators to audit financial institutions in Singapore.

In addition to cryptocurrency-specific measures, the bill proposes broader regulatory powers. The measures against crypto assets are believed to be due to the successive bankruptcies of crypto-related companies, which have been particularly noticeable since the year before last, and the failure of a project by Terraform Labs, which worked on stable coins.

As a result, Singapore has long been considering regulating crypto assets from the perspective of protecting customers.

Reference:Bill
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