According to a recent publication, The Monetary Authority of Singapore (MAS), is advocating for an adjustment in its regulatory framework to allow market entry for blockchain-based and decentralized exchanges. The publication stated that the present “recognized market operators” (RMO) regulatory framework is unable to keep up with the requirements for new business models which are based on such emerging technologies.
The authority stated in the paper that:
“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,” and also added that
“As the current RMO regime has been in place since 2002, it is timely to review the regulatory framework for market operators to ensure that it continues to meet the demands of the changing landscape.”
It proposes a 3 tier regulatory framework allowing market entry for blockchain-based and decentralized exchanges. “This new tier is designed to facilitate new entrants that develop solutions for wholesale market participants, or market operators that have reached the end of their sandbox tenure and are commercially viable, but whose businesses are not able to meet the requirements of the existing RMO regime,”
Financial institutions and other concerned parties have been given till the 22nd of June to respond to the proposal.