The Monetary Authority of Singapore (MAS) has proposed amendments to the current regulatory provisions that will aim to reduce the requirements for crypto exchangers to enter the market.
According to reports, the MAS - which serves as Singapore's financial regulator and central bank - has issued a consultation paper reviewing the regulatory framework in place for financial market operators since 2002. All financial institutions and interested parties will be able to submit written comments on the document until June 22, 2018.
The Authority argues that the current regulatory framework cannot cope with the need for new business models based on new technologies.
Blockchain technology and related services are referred to in the document as “new business models on trading platforms, including merchants that use blockchain technology or platforms that provide services p2p trading without the participation of intermediaries.”
The main change proposed by MAS in the consultation document is the move to a three-tier system for the second category of operators - recognized market operators (RMO).
MAS currently divides operators into two categories - approved exchangers (AE) and RMO.
The modified system will divide them into three ranks:
- operators of target markets will become the first rank
- operators of markets that are currently defined as RMOs will become the second rank
- market operators with significantly less business than AE or RMO will become the third rank.
Other proposed changes included lower capital requirements, simplified regulations, risk management and outsourcing. These proposals target tier three operators and are aimed at increasing the number of small operators, including exchanges, in the blockchain space.
Singapore has repeatedly stressed that it does not view cryptocurrencies as a threat, and its approach to regulation has in the past helped earn a reputation as a moderate jurisdiction. These changes can help strengthen the country's position.
According to bitcoinist
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