Emerging FinTech Forcing Singaporean Authorities To Review Regulations

The Monetary Authority of Singapore has recently published a “Proposed Activity-based Payments Framework and Establishment of a National Payments Council” paper, with recommendations to review the existing payments regulation in Singapore.

The Monetary Authority of Singapore (MAS) notes that the current payments framework in Singapore must be changed, considering emerging FinTech solutions and their impact.

The consultation paper, published August 25, 2016, states:

“With technological advancements and the advent of FinTech, the lines between payment systems, SVFs, and remittances are blurring rapidly. This is especially striking for remittance, which has traditionally accepted cash at a physical storefront but where a FinTech company could allow customers to fund payments through a SVF or directly from a bank account.”

The MAS notes the dangers of cyber-attacks, the limited transparency of the global payments ecosystem, and various fees users must cope with.

The Monetary Authority of Singapore offers some recommendations that should help to transform Singapore’s payments landscape by 2020, like regulation and supervision of the payments ecosystem and remittance businesses and establishing a National Payments Council to implement key projects and govern scheme rules for payment systems. 

To date, Singapore’s payment ecosystem has lacked the participation of demand-side voices (businesses, merchants, consumers, etc.), however, from 25 August 2016 to 31 October 2016, the MAS is soliciting public consultation and feedback on the proposed regulatory framework recommendations.