Category: Uncategorized

Singapore, 17 May 2026

The Monetary Authority of Singapore (MAS) has proposed a fundamentally new, risk-based prudential framework for banks holding or issuing cryptoassets on public permissionless blockchains — and the consultation closes tomorrow, 18 May 2026.

The proposal marks a decisive shift from a historically conservative, default capital treatment to a flexible, principle-based approach that rewards demonstrated risk mitigation. Rather than applying broad blanket restrictions, MAS evaluates cryptoassets based on risk across four core areas: governance, technology, settlement finality, and AML/CFT compliance. Banks that can prove adequate safeguards — including diversified validators, transaction finality mechanisms, independent smart contract audits, and user verification controls — may qualify for more favourable capital treatment.

Crucially, the framework sets strict interim caps to manage systemic risk during the transition. Local banks would be allowed exposure up to 2% of Tier 1 capital under the alternative approach, with issuance capped at 5% of Tier 1 capital. Singapore branches face tighter limits of 0.2% exposure and 1% issuance relative to total assets. Anything above those thresholds defaults to conservative capital treatment. MAS retains override authority to reclassify any asset at any time, and banks must provide one months prior notice before applying the alternative approach, alongside senior management confirmation and MAS approval.

Industry analysis from Bird and Bird Singapore describes the proposal as a gamechanger that could unlock tokenized payments, stablecoin settlement, and blockchain financial infrastructure within Singapores regulated system. However, the regulatory standard is equally notable: MAS is explicit that it is not relaxing prudential standards — merely introducing a pathway for cryptoassets meeting defined criteria to receive favourable treatment. The broader ecosystem impact could be profound, forcing crypto providers to build governance-ready products from inception to meet bank-grade requirements.

The submission deadline of 18 May 2026 makes this the most immediate regulatory deadline for financial institutions in the region this week. MAS is seeking industry input on the adequacy of its principle-based deeming provisions, AML/CFT requirements, and the calibration of exposure and issuance caps. This will be one of the first major prudential frameworks for public blockchain cryptoassets anywhere in the world.

Sources: Bird and Bird Singapore; MAS media releases; Two Birds analysis. Consultation paper published April 2026. Feedback deadline: 18 May 2026.

Bangkok, 17 May 2026

Thailand’s Cabinet approved in principle on today a landmark amendment to the Foreign Business Act (FBA) B.E. 2542 (1999), removing the Foreign Business License (FBL) requirement for select service sectors and opening the kingdom to greater foreign direct investment.

The amendment, first reported by Thai public broadcaster Thai PBS and confirmed by Deputy Commerce Minister Natthaphong Ruayaphinichkrai, reclassifies eight categories of service businesses from the FBA’s restricted List 3 to exempt status. Under current law, any company with 50 per cent or more foreign shareholding must obtain an FBL to operate in restricted sectors — a process that typically takes 60 to 90 days of committee review. The new framework eliminates this hurdle for qualifying sectors, allowing foreign-majority companies to register directly under the Thai Company Act and begin operations immediately.

The eight newly exempted sectors span telecommunications services, treasury center operations (cross-border cash and FX management for affiliated companies), administrative and IT support services, domestic debt guarantee services, leasing of premises for financial ATMs and kiosks used by employees, petroleum drilling services, businesses regulated under securities and stock exchange laws, and agents or fund managers for futures contracts where the reference variable falls outside the Derivatives Act. An additional exemption covers agricultural futures trading through designated derivatives exchange warehouses.

The reform is achieved through two complementary instruments: a Royal Decree updating the FBA’s business schedules and a Ministerial Regulation designating the exempt service categories. The government has emphasised that the amendment targets regulatory redundancy rather than unrestricted liberalisation. Sectors already supervised by specialised regulators such as the Bank of Thailand, the Securities and Exchange Commission, the National Broadcasting and Telecommunications Commission, and the Energy Regulatory Commission no longer need duplicate approval from the FBL committee.

However, the government has simultaneously intensified enforcement against nominee shareholding arrangements. The Department of Business Development is preparing stricter company registration procedures to identify unlawful Thai nominee structures, while investigations into foreign nationals operating businesses through Thai nominees on tourist islands have been ramping up. The message is clear: legitimate foreign investment is welcome, but circumvention of ownership caps (which remain at 49 per cent for non-exempt sectors) will face tougher scrutiny.

Analysts say the amendment positions Thailand more competitively against Singapore, Malaysia, and Vietnam in the race for regional treasury hubs, digital infrastructure investment, and shared services. The draft rules now require review by the Council of State before final Cabinet approval and publication in the Royal Gazette, with an expected effective date of 3 to 6 months from today.

Sources: Thai PBS World; Thai Enquirer; Lex Bangkok; Thaiger; Deputy Commerce Minister Natthaphong Ruayaphinichkrai (via Thai Cabinet briefing), May 2026.

Two prominent ⁠former Malaysian ministers said on ⁠Sunday they would vacate their parliamentary seats ⁠and resign from Prime Minister Anwar Ibrahim’s ruling coalition party to join a small party that they would take over.
The move by Rafizi Ramli and Nik Nazmi Nik Ahmad, who resigned from cabinet last year after losing leadership posts in internal party elections, ‌could create a challenge for Anwar, amid speculation of an early election this year. The next general election is not due until…

Headline: Southeast Asian Fintech Giants Face New Compliance Standards

In a landmark move to unify cross-border financial regulations, regulators across ASEAN nations have introduced a standardized framework for digital asset trading and anti-money laundering (AML) protocols.

This shift targets the rapidly expanding fintech sector and is expected to streamline approvals for international operators.

Analysts suggest this new regulatory environment will set a precedent for how global financial institutions structure their operations across the region.

Source: ASEAN Finance Ministers Meeting, Q3 2026

A Maldivian military diver died Saturday while searching for the bodies of four Italian divers believed to be deep inside an underwater cave.
The group of five Italian divers is believed to have died while exploring a cave at a depth of about 50 meters (160 feet) in Vaavu Atoll on Thursday, according to Italy’s Foreign Ministry. The recreational diving limit in the Maldives is 30 meters (98 feet).
Maldives presidential spokesman Mohammed Hussain Shareef said that Mohamed Mahudhee, a member of…

A collision between a goods train and a bus killed at least eight people and injured 35 in the Thai capital Bangkok on Saturday, police said.
Firefighters and rescuers cordoned off the collision site, with investigators seen peering into the burnt-out shell of the bus.
Pedestrians were ushered away from the busy downtown intersection, which is used by tens of thousands of vehicles each day. “Eight people have died and 35 others were injured,” Bangkok police chief Urumporn Koondejsumrit…

Two projects involving water companies in the UK highlight efforts the industry is taking to harness AI and other technologies to address challenges it faces, an expert has said.

As the Albanese government continues to roll out landmark reforms to the Environmental Protection and Biodiversity Act 1999 (Cth) (EPBC Act), consultations are now underway on the next phase of reforms.

Thirty-four European states plus Australia, Costa Rica and the EU said on Friday they would join a future special tribunal for Ukraine to prosecute Russia over its invasion of the country.
Ukrainian President Volodymyr Zelensky signed an accord with the Council of Europe last year to create a legal body to prosecute the “crime of aggression” in the invasion Russia launched in February 2022.
The Council of Ministers, comprising foreign ministers from the organisation’s 46-member states, in a…

A widely touted economic hub in the Philippines will involve eight more countries, signalling greater international confidence in the long-term viability of the ambitious project to boost connectivity and trade in a key region.
The Luzon Economic Corridor (LEC), a trilateral infrastructure initiative led by the US, Japan, and the Philippines, is set to receive additional support from Canada, Australia, Denmark, France, Italy, South Korea, Sweden and the United Kingdom.
Initially envisioned as a…