In Singapore, certain cryptocurrency activities such as crypto derivatives aren’t regulated. A new Bill proposes to expand the Monetary Authority of Singapore’s (MAS) reach in this area. If passed, MAS can provide direction on how regulated institutions conduct unregulated activities such as crypto derivatives. The Bill has received its first reading.
Capital markets service license (CMSL) holders can offer unregulated products such as bitcoin futures and other derivatives traded on offshore exchanges. The regulator is concerned about the potential for losses impacting the regulated activities of the license holder. For example, a company might have a regulated market operator license for trading securities. But additionally, they may offer crypto derivatives.
MAS has already provided guidance where regulated firms conduct unregulated business with retail investors. If the new Bill is passed, MAS can “issue written directions on the minimum standards and safeguards that should be in place when CMSL holders and their representatives conduct unregulated businesses.”
Meanwhile, in August last year MAS finalized its stablecoin framework. Three months later it gave three stablecoins from Paxos and StraitsX a green light to launch while it finalizes the implementation of the stablecoin framework.
