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MAS signals moves welcomed by e-money wallet providers

After two years of coming to grips with the Payment Services Act regime, e-money service providers have cause for celebration when the Monetary Authority of Singapore signaled by its new consultation paper that limits for e-wallets will be modified slightly and certain white label account issuance activity will be exempted.

Undoubtedly, service providers would have found that a one size fits all approach would result in some areas coming unstuck and would have provided feedback to the regulator. This news suggests that the regulator is willing to listen and accept modifications subject toe managing risk. The regulator also reserved the right to grant specific exemptions if necessary.

The larger question is whether such rule making will extend to other areas of fintech currently being regulated?

MAS recognises that there may be changes in consumer behaviour, usage of e-wallets, and e-wallet business models in Singapore over time. MAS had considered these alongside prevailing statistics on consumer usage since the caps were instituted, and studied the potential impact of e-wallet flows on financial system stability.

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fintech, entertainment & media, tech & data

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