Changes in regulations are being initiated by the Monetary Authority of Singapore (MAS) to make it easier for the decentralized blockchain
exchanges do business in Singapore.
As outlined in a consultation paper, “circulated” on Tuesday, MAS proposes a three-tier “recognized market operators” (RMO) to replace the existing single-tier structure which, according to the paper, does not satisfy the requirements for business models based on new technologies. The proposed changes are aimed to let the smaller-scale exchange platforms go into business in the city-state without unnecessary difficulty regarding compliance.
“MAS has observed the emergence of new business models in trading platforms, including trading facilities that make use of blockchain technology, or platforms that allow peer-to-peer trading without the involvement of intermediaries,”
the MAS described in the paper, further stating:
“As the current RMO regime has been in place since 2002, it is timely to review to the regulatory framework for market operators to ensure that it continues to meet the demands of the changing landscape.”
The de-facto central bank, presently, divides the exchange market into two categories — approved exchanges (AE) and the recognized market operators (RMOs). AE’s are the “systemically-important” platforms which the Singapore’s stock exchange and other retail investors use while the RMO scheme regulates commodities and derivatives trading.
MAS will allow feedback from businesses and financial institutions on the proposal until June 22.