The Monetary Authority of Singapore (MAS) has issued a consultation paper proposing a regulatory sandbox for fintech startups and pilot schemes.
The proposal will enable firms to experiment with new technology in an environment of relaxed rules and appropriate safeguards.
"MAS aims to provide a responsive and forward-looking regulatory approach that will enable promising fintech innovations to develop and flourish," said MAS deputy managing director Jacqueline Loh. "The sandbox will help reduce regulatory friction and provide a safer environment for fintech experiments. We believe this will give innovations a better chance to take root."
The consultation will last from June 6th to July 8th.
The MAS hopes that the sandbox will help to boost innovation in Singapore's banking sector. It follows the establishment of SG-Innovate by the Singapore government in April this year which is similarly designed to bolster Singapore's ambition to be the fintech hub for Asia-Pacific.
In addition to the government and central bank-backed projects, a number of banks including Standard Chartered and HSBC have set up innovation labs in Singapore.