• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Conventus Law

Conventus Law

Conventus Law

  • About Us
  • Channels
    • Jurisdiction Channel
    • Practice Area Channel
    • Industry Channel
    • Business Of Law
    • Law Firms
    • Special Reports
  • Video
  • Events
  • Explore
  • Search
  • Membership
  • Conventus Doc
x
Search

More results...

Generic filters
Home » Special Report » Singapore’s New FinTech Regulatory Sandbox Initiative

Singapore’s New FinTech Regulatory Sandbox Initiative

October 17, 2016

October 17, 2016 by

September, 2016

 

Singapore’s New FinTech Regulatory Sandbox Initiative

 

There is much abuzz over the global financial technology (“FinTech”) revolution, and Singapore, being the home of a number of innovative firms, is not exempt from it.  With the proliferation of online currency and e-payment products such as Blockchain, Bitcoin, Apple Pay, PayPal, and crowdfunding sites such as GoFundMe, FinTech is no longer just for the banks, but also for the benefit of the average consumer.  In response to increasing concerns over the potential to stifle FinTech innovation, the Monetary Authority of Singapore (MAS) has proposed a new “regulatory sandbox” initiative that will enable both financial and non-financial businesses to "experiment with FinTech solutions."  We had a chance to speak with the seasoned Financial Services Regulatory lawyers at Shook Lin & Bok LLP about this new development in FinTech, and here is what they had to say.    
 
Conventus Law:  For those who are new to the term, what is FinTech, and why all the hype around it?

 

Shook Lin & Bok LLP:  FinTech is short-form for Financial Technology, and generally refers to any technology solution that helps improve the manner in which financial services are delivered.  There isn’t a precisely defined scope of coverage to the term, but it is commonly used in relation to the banking and payment services sectors.
 
CL:  What is the aim of the MAS’s proposed FinTech sandbox initiative?

 
SLB:  The authorities in general are keen to promote Singapore as a regional hub for FinTech.  This is in line with Singapore’s existing position as an international financial centre.   At the same time, one cannot afford to overlook the risks that are posed to users of financial services, particularly when novel technologies are involved.  The MAS proposal for a regulatory sandbox regime is intended to strike a balance between these two competing considerations.

The regulatory sandbox will be a relatively insulated environment within which a financial institution will be allowed to experiment with a FinTech solution, while being subject to a less rigorous regulatory burden.
 
CL:  What type of businesses will be interested in participating?
 
SLB:  I would imagine that all sorts of businesses would have an interest.  Given that the financial markets here are dominated by the large, brick and mortar financial institutions, my guess would be that applications for approval to operate a sandbox would initially be made by the large financial institutions who would partner with tech companies that have the particular Fintech idea. 
  
CL:  Will the ‘FinTech regulatory sandbox’ serve as a good compromise between the promotion of innovation and the need to regulate, and if yes, how?
 
SLB:  That appears to be the idea.  However, it may be too early to tell if the specific MAS proposals go far enough. For example, in the consultation paper for the regulatory sandbox, it is stated that regulatory requirements would be relaxed only for the duration of the sandbox, i.e., while experimentation of the FinTech solution is in progress.  This presumably means that once the FinTech solution is ready to be rolled out to a wider market, the full regulatory regime would be restored.  But what if experience during the sandbox period suggests that a particular regulatory requirement ought to be waived altogether.  Would this be something that MAS is prepared to consider? Only time will tell, but certainly the proposals so far are a move in the right direction.

 

Shook Lin Bok LLP 

 

 

For further information, please contact:  

 
Eric Chan, Partner, Shook Lin & Bok
eric.chan@shooklin.com

Primary Sidebar

PRESS RELEASES

  • UK – Asset Based Finance Lawyer Tom Dell’Avvocato Joins Crowell & Moring In London. 17 September 2025
  • Crowell & Moring Lawyers Author Chapter In Global Arbitration Review’s The Guide To Construction Arbitration. 17 September 2025
  • Sidley Represents ChowChow Cloud In Its IPO And Listing On NYSE American. 17 September 2025
  • Sidley Represents PT J Resources Nusantara In Its Sale of PT Arafura Surya Alam for US$540 Million. 17 September 2025
  • Linklaters Advises On Alibaba’s Approximately US$3.2bn Zero-coupon Convertible Bond Issuance. 17 September 2025

NEWS FEED

    September 17, 2025

    Philippines – Written Deed Of Donation Essential For Subdivision Land Turnover To LGU.

    - Nilo T. Divina - DivinaLaw,
    September 17, 2025

    Driving Adoption Of Matter Management Software Across Legal Ecosystems.

    - Sacha Kirk - Lawcadia,
    September 17, 2025

    US – Senate Finance Committee Looking To Take White River To The Train Station, Confirms DOJ Investigation Into Tribal Tax Credits.

    September 17, 2025

    One Year After Illumina/Grail – How Are EU Competition Authorities Now Dealing With Below-Threshold Mergers.

    September 17, 2025

    Hong Kong – Employer’s Right To Enforce Restrictive Covenants Restraining Former Employee To Service Long Term Customer.

    - Angela Wang Poey Foon - Angela Wang & Co.,
    September 17, 2025

    GST 2025: A Brave New Chapter In India’s Tax Reform.

    September 16, 2025

    India – Loss Of Profits Vs. Loss Of Profitability In Construction Contracts: Navigating The Legal Maze For Accurate Claims.

    September 16, 2025

    India – Expert Witnesses In International Arbitration: Untangling Complexity Or Adding To The Cacophony?

    September 16, 2025

    From The Arabian Sea To The Strait Of Malacca: Forging The India-Singapore Axis.

    September 16, 2025

    India – Majority Stake, Minority Fate: Reverse Oppression Under The Companies Act, 2013.

Footer

Conventus Law
  • Linkedin
  • Twitter
  • Facebook

CONVENTUS LAW

  • About Us
  • Explore
  • Video
  • Events
  • Contact Us
  • Jurisdiction Channel
  • Practice Area Channel
  • Industry Channel
  • Law Firms
  • Business Of Law
  • Special Reports

OTHERS

CONVENTUS DOCS
CONVENTUS PEOPLE

3/f, 13/F, Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong

social@conventuslaw.com

Terms of use | Privacy statement © 2025 Conventus Law. All Rights Reserved.