Capital markets News

Singapore, China regulators discuss blockchain for capital markets

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Executives of the Monetary Authority of Singapore (MAS) and the China Securities Regulatory Commission (CSRC) met for their fourth roundtable to discuss regulatory developments for capital markets in the two countries. Topics discussed during the meeting included the application of blockchain technology in capital markets and the use of data analytics in capital market supervision.

“The annual Roundtable is a valuable forum for both sides to have candid exchanges and close interactions on areas of mutual interest,” said Ong Chong Tee, Deputy Managing Director of MAS.

Both organizations are also members of the International Organization of Securities Commissions (IOSCO) which is currently exploring how blockchain can be used to address conflicts of interest.

Blockchain activity in China has accelerated after supportive comments from President Xi Jinping. The country’s central bank is also working on a central bank digital currency (CBDC), a digital yuan, which may leverage blockchain technology at some level.

Concerning CBDCs, MAS has carried out extensive experiments in Project Ubin. This also includes a trial for cross border payments with Canada’s CBDC Project Jasper. Two months ago, MAS completed a blockchain trial of a multi-currency payments system in collaboration with JP Morgan and state-owned Temasek.

Meanwhile, Singapore’s MAS is also helping start-ups in the country to develop viable blockchain applications by facilitating a regulatory sandbox. A few months ago, MAS launched Sandbox Express, allowing certain fintechs to participate in the sandbox within 21 days of applying to MAS.

Ledger Insights earlier reported on BondEvalue, which developed its blockchain bond trading platform in Sandbox Express.

However, while China cracks down on cryptocurrency, MAS is considering regulating derivatives based on ‘payment tokens’ such as Bitcoin and Ether. It is also a participant in the Global Financial Innovation Network (GFIN), which is a cross border regulatory sandbox.

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