Singapore’s Regulator Considers Licenses for Digital-Only Bank

Asia Blockchain Review
May 25, 2019

The Monetary Authority of Singapore (MAS) the country’s central bank is reportedly considering whether to issue digital-only licenses for online banks to operate their businesses, according to e-commerce news platform PYMNTS.

The MAS said in an email to Bloomberg, “We have been engaging relevant stakeholders to ascertain the unique value that such entrants could bring to our banking landscape, and understand how potential risks will be managed and contained.”

The Singaporean regulator stated that it has been open to digitization in the banking and financial sector, noting that since 2000, Singaporean lenders have been able to launch digital-only businesses in the country.

Singapore’s central bank has been experimenting with blockchain technology for some time through projects with partners in the financial industry, such as sending currency to Canada’s central bank via their blockchain networks.

DBS Chief Executive Officer Piyush Gupta said in an interview with Bloomberg that digital banks and local banks are not in competition with each other. “To my mind, that’s just basically giving a few more banking licenses,” Gupta reasoned.

However, he cautioned that there may be issues arising from digital bank licenses if the rules for digital-only banks are less strict compared to traditional banks, adding that the country’s financial authorities should ensure that they do not create an “uneven playing field.”

Meanwhile, OCBC Chief Executive Samuel Tsien stated in an email to Bloomberg that the rise of banks that offer digital-only services in Singapore is a certainty, while saying that the business model of the digital banks would depend on each operator.

Source: www.pymnts.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Blockchain Enables Verification of COVID-19 Immunity
    Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

    November 21, 2020

    Illicit Cryptocurrency Activity: A Concern
    Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

    November 20, 2020

    IBM Using Blockchain to Help Businesses Reopen during COVID-19
    IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

    November 20, 2020

    Canadian Pacific Railway Collaborates with TradeLens
    Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

    November 19, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us