Final SFA Statement
Singapore, 17 January 2022 –
On 17 January 2022, the Monetary Authority of Singapore (MAS) issued new Guidelines advising that Digital Payment Token (DPT), or cryptocurrency, service providers should not promote their DPT services to the general public in Singapore due to the inherent high risk and speculative nature of DPT.
Stemming from our ongoing dialogue with the MAS, the Singapore FinTech Association (SFA) and SFA Payments Group (SFA-PG) are cognisant that these new guidelines demonstrate that Singapore continues to see blockchain and cryptocurrencies as innovations that have the potential to gain mass adoption in the community. It is imperative that such adoption is balanced with pragmatic guardrails and a system of consumer protections aiming to create a more sustainable market environment.
At SFA, we remain committed to furthering Singapore’s vision of being a FinTech hub and will continue to engage and support our members and the FinTech ecosystem in areas of blockchain and crypto technology, and to prepare for a Web 3.0 future. This includes keeping members informed of developments affecting our industry and their business through ongoing regulatory and industry engagement activities.
“MAS’ efforts to make Singapore a welcoming space for the development of blockchain technologies are well perceived not just by Fintechs in Singapore, but by the global Fintech community,” said Shadab Taiyabi, President of the Singapore FinTech Association.
“The technology behind blockchain has the potential to open many exciting opportunities for the industry and bring benefits to consumers. Opening the doors to innovation also requires a system of checks and balances to be put in place before consumers gain full awareness and understanding of the new tools. We will continue to work with MAS and key stakeholders within the Fintech community to ensure the smooth and positive development of the DPT environment and to drive innovation that brings true value and benefits to the Singapore community,” he continued.
“The SFA-PG believes that this newly issued Guideline on the Non-promotion of Digital Payment Token Services to the Public, will bring increased stability and pragmatism to the rapidly evolving blockchain and cryptocurrency industry, and does not signal a shift in Singapore’s approach to DPT’s. Rather, we see this as further evidence of Singapore’s long-term commitment to the industry. Singapore remains firmly open to the development of the industry, and is committed to being a hub for FinTech, blockchain, cryptocurrency and payment innovations,” said James Shanahan, Chairman of the Payments Group Sub-Committee for the Singapore FinTech Association.