The Monetary Authority of Singapore (MAS) announced on 30 April that it will provide S$42 million (US$31.5 million) through a new regtech grant and the existing Digital Acceleration Grant (DAG).
This is a massive boost to financial services and can positively affect cryptocurrencies and digital payments, according to Regtank, the Singapore-based provider of a one-stop regtech solution.
Megan Lee, co-founder of Regtank, says: “The new MAS regtech grant can boost the adoption of regulatory compliance needed to bring virtual assets into the mainstream.”
“When companies get licensed under the Payment Service Act licensing regime, they become a MAS-regulated financial institution and can apply for this grant to upgrade their regulatory compliance infrastructure.”
Lee continues: “Not just reserved for crypto and digital payment service providers, regtech can be the driving force behind helping financial institutions react faster to increasing regulations. A significant benefit we have seen is improved productivity when manual processes are consolidated and automated, freeing compliance officers to focus on strategic tasks. With a single pane of control, potential breaches can be identified faster with a clear audit trail to prevent bad actors.”
The regtech grant aims to promote technology solutions adoption in the risk management and compliance functions of Singapore-based financial institutions. The grant also supports upskilling efforts where employees in financial institutions based in Singapore acquire new domain expertise in the use of technology to augment and sustain risk management and compliance operations.
The scheme covers two tracks: pilot and production capped at S$75,000 (US$56,000) and S$300,000 (US$226,000) respectively.
Under the pilot track, financial institutions can seek funding to pilot potential regtech solutions before embarking on full-scale integration of the product into its operating environment.
Through the production level project track, financial institutions can seek funding to develop larger scale customised projects that can be fully integrated into their systems.
“MAS remains committed to the digital transformation of the Singapore financial sector. We expect the RegTech ecosystem to flourish with widespread use of innovative solutions to aid risk management and compliance.” the regulator says in a statement.
For more information on the regtech grant, visit regtank.com.