Singapore regulators’ attitude towards blockchain innovation: Just do it!

Rage Comment : Singapore Prime Minister Lee Hsien Loong once publicly urged Singapore's financial sector to keep up with the development of blockchain technology. Therefore, Singapore is far more open to regulatory policies on blockchain and other financial innovations than other Asian countries. When introducing the Singapore government's main regulatory attitude towards financial innovations such as blockchain and Fintech, the head of the Monetary Authority publicly stated that they welcome all kinds of financial innovations, even if they conflict with current laws and regulations, as long as they are registered in advance and the business is carried out under their guidance, Just Do It.

Reporter: Pencil lead

The Monetary Authority of Singapore (MAS) recently launched a "Sandbox" mechanism for FinTech companies, which means that any FinTech company registered in the Sandbox is allowed to engage in business that conflicts with current laws and regulations with prior notification. Even if the relevant business is terminated by the authorities in the future, the relevant legal liability will not be pursued.

Through this "sandbox" mechanism, the government can carry out various financial innovations within a controllable range, and entrepreneurs can also feel at ease to try various related innovative businesses. In addition to the Singapore government, the British government is also trying a similar "sandbox" system for the Fintech industry.

Ethereum founder Vitalik Buterin and Wanxiang Blockchain Lab visited the Monetary Authority of Singapore and Singapore Management University last week, hoping to learn more about the innovative mechanism of the Singapore government, and also hope to have full communication with relevant blockchain companies in Singapore, hoping to enable more blockchain companies in Asia to understand each other better and explore the future development path of blockchain in Asia.

Blockchain practitioners in Singapore are also very concerned about the development of the blockchain industry in mainland China, and hope to understand whether Singapore's blockchain industry will have more opportunities under the mainland's "Belt and Road" strategy.

KC Chng, co-founder of Singapore blockchain startup DigixGlobal, said that their current tokens are listed on the mainland digital asset exchange Yunbi. They are very interested in whether there will be any legal and compliance issues under the current Chinese law. Many people know that "Chinese aunties" have a great interest in assets such as gold. How can they expand development opportunities in China as soon as possible while complying with Chinese regulations?

Dr. Xiao Feng, founder of Wanxiang Blockchain Lab, said,

Soon in September, a large blockchain summit will be held in Shanghai. Many global blockchain companies and founders will come to Shanghai to discuss the development of blockchain technology in China and the world. This will also be an opportunity for Singapore blockchain startups to introduce themselves to the world.

Some entrepreneurs and regulators in Singapore said that Singapore Prime Minister Lee Hsien Loong once publicly urged the Singapore financial sector to keep up with the development of blockchain technology. Therefore, Singapore banking institutions pay more attention to the application of blockchain in the field of trade finance. How do Chinese banks view blockchain technology? Dr. Xiao Feng pointed out,

So far, the infrastructure of Chinese banks may be much better than that of other countries, so in terms of efficiency, even if blockchain technology is used, it is not necessarily possible to see a significant improvement in efficiency in the short term. However, in terms of supply chain finance, it may be a breakthrough for domestic blockchain in the financial field, and better results can be seen in the short term. Because similar to supply chain finance, it will involve more industries and also involve cooperation among multiple parties, and blockchain, as a large-scale collaborative work, can play a greater role, which is likely to be a breakthrough point for blockchain technology in China.

On the evening of May 31, the Monetary Authority of Singapore held a press conference for the November Fintech Conference. At the conference, the main person in charge of the Monetary Authority said that the Singapore government has recently launched a "sandbox" system, which will allow blockchain start-ups to gain a lot of room for innovation. Although Singapore is not a big country, there are many blockchain start-ups, and they are very much looking forward to playing a more important role in the development of the global blockchain industry. At the same time, more global blockchain companies are also welcome to come to Singapore, which will provide the best entrepreneurial environment.

At the press conference, the head of the Monetary Authority of Singapore, while introducing the Singapore government's main regulatory attitude towards financial innovations such as blockchain and Fintech, publicly stated that they very much welcome all kinds of financial innovations. Even if there are conflicts with current laws and regulations, as long as they are registered in advance and the business is carried out under their guidance, Just Do It.

Singapore is already considering establishing an accelerator (incubator) for the blockchain industry, and Wanxiang Blockchain Lab will also establish the country's first blockchain accelerator in Shanghai in July this year. It is hoped that these blockchain accelerators can be connected in the future, so that blockchain start-ups in the two places can not only have more opportunities for interaction, but also have broader market opportunities in the future.

Representatives from UBS Singapore also expressed their great interest in this event and they hope to be able to participate in such cross-border collaboration activities in the future.