SC signs fintech agreements with HK, Dubai and S’pore
PETALING JAYA: The Securities Commission (SC) has established financial technology (fintech) cooperation agreements with three more foreign regulators in major financial centres as it seeks to facilitate and regulate innovations in the digital finance industry.
The capital market regulator has signed fintech cooperation agreements, also known as fintech bridges, with the Hong Kong Securities and Futures Commission (SFC), the Dubai Financial Services Authority (DFSA) and the Monetary Authority of Singapore (MAS).
The first fintech bridge was established in June this year, following the cooperation agreement between SC and the Australian Securities and Investments Commission (ASIC).
“The fintech bridges with major markets in the Asia-Pacific and the Middle East form part of the SC’s digital strategy, and build on the already well-established relationships that the SC has with these regulators.
“Such efforts will promote innovation within capital markets, and enhance the cross-pollination of digital finance concepts which will benefit financial services institutions, start-ups and investors alike.
“These cooperation agreements would also shape facilitative and up-to-date regulations that would strengthen Malaysia’s market for fintech and digital innovation in capital markets,” said SC chairman Tan Sri Ranjit Ajit Singh.
Moving forward, greater information sharing on emerging trends and regulatory develop- ments can be facilitated via the cooperation among the regulators.
The fintech bridges also aims to facilitate referrals of innovative businesses seeking to operate in each other’s jurisdictions and the exploration of potential joint innovation projects. The establishment of such cooperation with regulators in major financial centres is envisaged to help shape the regulatory approach and encourage the growth of digital finance in Malaysia.
The SC’s move to form the fintech bridges is part of the larger initiative to improve Malaysia’s digital economy moving forward. To note, the contribution of Malaysia’s digital economy to the gross domestic product is expected to exceed the 20% target by 2020, from the current 17%.