Fintech Regulation: New Law to Impact Mobile Wallet Operators in Singapore

Singapore is about to introduce a new law to prevent shadow banking by requiring mobile wallet operators and payments startups to ring-fence deposits so they don’t function as unregulated banks.

Singapore is about to introduce a new law to prevent shadow banking by requiring mobile wallet operators and payments startups to ring-fence deposits so they don’t function as unregulated banks.

In an exclusive interview (paywall) with the Business Times, Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), said the central bank wants to level the playing field between banks and fintechs from the perspective of risk, and calibrate the rules by the fintech’s scale of operations.

The new rules, which are likely to become legislation but the end of the year or early next year, is part of the Payment Service Bill and stipulate that mobile wallet operators with an average daily e-money float of more than S$5 million will have to fully secure the funds.

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