The Monetary Authority of Singapore (MAS) has clarified its stance regarding cryptocurrency businesses participating in its FinTech regulatory sandbox framework. In response to criticism from a Financial Times letter, the MAS emphasized that Singapore does not have a "cryptocurrency sandbox." Instead, it has a sandbox supporting fintech experimentation.
The criticism in the letter had questioned the lack of public consultation and oversight regarding cryptocurrency adoption in Singapore. It specifically mentioned the access of cryptocurrency firms to Singapore's Fast and Secure Transfer (FAST) interbank payments system. The FAST system allows electronic funds transfers in Singapore dollars between participating entities. The MAS clarified that this system can be accessed by any business with a valid bank account, including cryptocurrency companies. However, it emphasized that FAST payments are made in fiat currencies, not cryptocurrencies.
Addressing concerns about rising malware scams in Singapore, the MAS stated that these scams are not cryptocurrency-related. Instead, it argued that such scams are more prevalent in the fiat economy, where fraudsters take control of customers' mobile devices to conduct unauthorized transfers in fiat currency through the banking system.
Regarding anti-money laundering (AML) measures, Singapore offers operating licenses to cryptocurrency businesses that demonstrate strong AML controls. These measures are set to be phased in from the end of the year, making Singapore one of the world's most stringently regulated jurisdictions for retail cryptocurrencies.
It's worth noting that former MAS Chairman Tharman Shanmugaratnam, who has been cautious about cryptocurrencies, recently won Singapore's presidential election. While serving as MAS chairman, he warned users about the high volatility and risk associated with crypto assets in 2021.
