Singapore’s Financial Institutions Bill 2024 Empowers MAS to Regulate Crypto Firms

The Financial Institutions Amendments Bill 2024, currently under consideration by Singapore’s parliament, seeks to enhance the powers of the Monetary Authority of Singapore (MAS) in overseeing financial activities. If enacted, the bill will empower MAS to issue directives to Capital Markets Services License (CMSL) holders, including cryptocurrency exchanges. This development is particularly significant for the crypto industry, as it expands MAS’s authority to regulate unregulated products such as Bitcoin futures and payment token derivatives traded on overseas exchanges. The bill addresses potential contagion risks that unregulated businesses conducted by CMSL holders may pose to their regulated activities. Cryptocurrency exchanges, which may fall under the CMSL category, will be subject to written directions from MAS regarding minimum standards and safeguards when engaging in unregulated activities. MAS had previously implemented measures to discourage speculative crypto investments, and this new legislation further strengthens its regulatory toolkit. (Source: Cryptopolitan)