MAS mulls unified regulatory framework for payments to accommodate FinTech

The lines between remittance and payments are blurring.

With the rapid emergence of financial technology, Singapore’s old payment regulations, currently cut across two pieces of legislation, just won’t do anymore.

According to a release by the Monetary Authority of Singapore (MAS), the lines between payments and remittance are blurring; new payment providers are emerging and some do not fit neatly into these categories.

Due to this, the MAS is proposing to bring payment regulations under a single framework that will provide for the licensing, regulation and supervision of all payments services, including stored value facility holders, remittance companies, and virtual currency intermediaries.

“Regulation will be applied on an activity basis, and entities will only be required to apply for a single licence to undertake several payment activities,” the central bank said.

Additionally, the proposal aims to strengthen standards of consumer protection, anti-money laundering, and cyber security related to payment activities, while facilitating innovation and system interoperability.

Meanwhile, as Singapore’s payments landscape is characterised by the availability of several well-established payment solutions, the MAS is also proposing to establish a National

Payments Council to coordinate key initiatives such as promoting interoperability and adopting common standards.

“The payments council will draw its members from among users and providers of payment solutions, and foster collaboration among stakeholders to promote and drive industry payment solutions,” the report said.

According to MAS deputy managing director Jacqueline Loh, the public consultation is an important step for MAS and the payments industry to co-create the future of Singapore’s payments landscape.