MAS and ASIC sign internet finance agreement

Rage Comment : Similar to the agreement signed between the Australian Securities and Investments Commission and the UK Financial Conduct Authority in March, the former signed an Innovation Functions Co-operation agreement with the Monetary Authority of Singapore to help startups in both countries quickly enter emerging markets, provide regulatory compliance advice, and reduce the time to market and regulatory uncertainty. The core technology applications involved in this cooperation include blockchain and distributed ledgers, which shows the interest of both countries in joint blockchain technology research and development and their confidence in the agreement to break down market access barriers for both sides. As DTCC Chairman Michael Bodson believes, leveraging the advantages of blockchain requires cooperation and consensus.

Translation: Annie_Xu

The Monetary Authority of Singapore (MAS) and the Australian Securities and Investments Commission (ASIC) have signed an agreement to jointly support innovative companies in the Singapore and Australian markets.

This Innovation Functions Co-operation agreement will support innovative Internet financial companies in both countries to conduct blockchain technology discussions in their respective markets more quickly and provide advice on licensing applications, thereby reducing regulatory uncertainty and time to market.

Sopnendu Mohanty

MAS Chief Financial Technology Officer Sopnendu Mohanty highly praised Singapore's active Internet finance ecosystem, with excellent infrastructure and a growing talent pool.

"The agreement between MAS and ASIC will create opportunities for internet financial companies in Singapore and Australia to develop and expand their respective markets. MAS also hopes to collaborate with ASIC on innovative projects in the application of core technologies, such as digital and mobile payments, blockchain and distributed ledgers, big data, and application programming interfaces (APIs)."

In order to optimize the support provided by the agreement, companies need to comply with the regulations of their respective regulators. Once submitted to the regulator, before applying to open new markets, a dedicated team or contact person will provide advice and assistance on the regulatory framework of the target market.

Regulators from both countries also pledged to jointly explore innovative projects and share information on emerging market trends and their regulatory implications.

ASIC chairman Greg Medcraft noted that since the establishment of the Innovation Hub last year, a large number of internet finance start-ups have emerged seeking regulatory compliance guidance.

“We are also specifically addressing robo- or digital advisory, crowdfunding equity financing, payments, marketplace lending, and blockchain business models. It’s been exciting to watch the work progress and clearly some of the business ideas are looking to expand around the world. We believe this agreement with MAS can help us break down barriers to entry in both markets.”

In early March, ASIC reached a similar Internet finance agreement with the UK Financial Conduct Authority (FCA).