MAS to publish crypto regulation plans by mid-2023

Passed in 2019, the Payment Services Act comes under the purview of the Monetary Authority of Singapore. / Photo credit: mimisim / Shutterstock

The Monetary Authority of Singapore (MAS) is reviewing feedback from respondents on proposed crypto regulatory measures and is looking to publish its response by mid-2023, said Tharman Shanmugaratnam, senior minister and chairman of the body.

MAS has been working with stakeholders on potential steps it can take to make dealing with crypto safer for everyone involved. This has come about after the implosions of Singapore-based firms such as Three Arrows Capital, Hodlnaut, and Zipmex in 2022.

Several measures have already been proposed to make digital payment token transactions safer, including altering the threshold for accredited investors and implementing an assessment for crypto investors.

MAS also shared its views on the novel tech in a seminar titled Yes to digital asset innovation, No to cryptocurrency speculation last year.

See also: How crypto will evolve after this weekend’s banking crisis

“The digital asset ecosystem is where MAS sees strong potential and is actively promoting,” MAS managing director Ravi Menon explained.

“But outside a blockchain network, cryptocurrencies serve no useful function except as a vehicle for speculation,” he added, noting that banning public access to crypto would be an ineffective solution.

Despite warnings from MAS, Menon said that citizens continue to trade, leading the body to contemplate “adding frictions on retail access to crypto.”

However, he believed that applications such as trade finance, cross-border payment and settlement, and capital market activities are worth exploring. Last year, MAS worked with JP Morgan, DBS Bank, and SBI Digital Asset Holdings to conduct the first tokenized foreign exchange.