UK and Singapore sign fintech agreement

The UK government and the Monetary Authority of Singapore (MAS) have signed a cross-border cooperation agreement (MoU), deepening cooperation in fintech and strengthening their economic cooperation.

The MoU intends to be a regulatory approach to FinTech that is seen globally as the model to emulate, by striking the right balance between efficiency and stability, ensuring that innovation is not stifled, while maintaining confidence in the financial system.

Furthermore, it moves to support the existing cooperation for FinTech and innovative financial services between the participants’ respective jurisdictions.

The memorandum has been created as a perceived growth opportunity that FinTech offers for both the UK and Singapore economies. It has the potential to improve outcomes for consumers, increase access to finance and financial inclusion, and improve innovation in financial services.

The parties believe that cooperation between the two parties, financial regulators and businesses will allow for informed and proactive policy actions, to address emerging issues and support the improvement of trade and investment flows between their respective markets.

Details of the collaboration

The participants intend to provide the greatest possible mutual assistance to each other within the provisions of this FinTech Bridge MoU. This MoU operates subject to the national laws and regulations of Singapore and the United Kingdom. It sets out a declaration of intent and therefore creates no enforceable rights and is not legally binding.

The agreement will deliver a strengthened framework for regulatory and policy discussions between the two countries, enable innovation across financial services, and ensure that businesses based in both the UK and Singapore have the ongoing support to realize their growth ambitions.

Impacts on the crypto sector

During their talks, the two countries shared their latest assessments of market developments, opportunities, trends and long-term expectations for the crypto-asset sector. They discussed risks and challenges related to financial stability, regulatory arbitrage, and shared their progress in strengthening consumer protection rules and developing the regulation of stablecoins.

They agreed on the need to support the secure development of a digital asset ecosystem while ensuring that risks posed by digital assets are consistently managed. Both countries will continue to participate actively in the design of robust global regulatory practices through involvement in international multilateral forums such as the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI) and IOSCO.

Digital banking and e-wallets

The two countries agreed on a roadmap for engagement in sustainable finance, fintech and innovation, and other areas of mutual interest. Both countries agreed on the usefulness of ongoing exchange of information on this topic, including on economic sanctions.

The FinTech Bridge MoU will:

• enable close and stronger cooperation between the participants and the industry through the establishment of a new structured commitment;

• provide a formalized framework for ongoing cooperation between the two participants on fintech issues, covering policy to policy and business to business (including trade and investment) engagement;

• recognize the ongoing regulator-to-regulator engagement on fintech matters between the FCA and MAS under the 2016 Cooperation Agreement;

• highlight the facilities and assistance available to fintech firms in each jurisdiction to explore new business opportunities;

• provide opportunities to discuss ways to improve available support and reduce barriers to entry in both jurisdictions; and

• facilitate future discussions covering the joint promotion of the FinTech Bridge and further innovation in financial services.