The payment sector is very prone to innovation and disruption right now. However, the most novel ideas will face regulatory hurdles at some point, which can hinder future growth. Singapore wants to streamline the regulatory framework to accommodate new payment innovations. Additionally, a National Payments Council will be established to create common standards between competing services.
Singapore Is On The Right Track For Bitcoin And Fintech
Uncertainty in the regulatory department is a grave concern for a lot of Fintech and Bitcoin startups. While entrepreneurs want to share their ideas with the rest of the world, local governments may feel otherwise. That will no longer be the case in Singapore, though. The Monetary Authority of Singapore proposed to merge legislative rules to provide more clarity.
To be more precise, their plan is to combine rulings in the Payment Systems Act and the Money-changing And Remittance Business Act. Both of these legislative guidelines revolve around stored value and remittances. As innovations seem to cross the dividing line between these two “sectors”, it makes sense to create a unified regulatory framework.
There Is a secondary reason for the MAS to propose such a solution, though. If their proposal is accepted, there would be one single framework handling licensing, regulation, and supervision of all local payment services. That would mean all startups and enterprises adhere to the same rules. Interestingly enough, this also encompasses third-party cryptocurrency providers.
Instead of forcing startups and companies to obtain several licenses, one license will cover most of the payment activities. At the same time, this new framework will focus on consumer protection, AML safeguards, and cyber security efforts. A National Payments Council will need to be formed to oversee this new unified framework moving forward.
All in all, this is rather positive news for Bitcoin in Singapore. Payments are evolving at an accelerated pace, and one unified regulatory framework is beneficial to all parties involved. Moreover, this will allow Bitcoin businesses to get licensed more easily, further legitimising their business models.
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