SC sets up fintech bridges with major financial centres

-A +A

KUALA LUMPUR (Sept 14): The Securities Commission Malaysia (SC) has set up financial technology (fintech) bridges by signing innovation cooperation agreements with the Hong Kong Securities and Futures Commission, Dubai Financial Services Authority and Monetary Authority of Singapore, to facilitate and regulate innovations emerging in the digital finance industry.

The bridges aim to ensure better information sharing on emerging trends and regulatory developments, SC said in a statement today.

They would also facilitate referrals of innovative businesses seeking to operate in each other's jurisdictions and the exploration of potential joint innovation projects.

In addition, the cooperation agreements would shape facilitative and up-to-date regulations that would strengthen Malaysia's market for fintech and digital innovation in capital markets.

SC chairman Tan Sri Ranjit Ajit Singh said the fintech bridges form part of 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, startups and investors alike," he added.

SC said digital economy contribution to the gross domestic product of Malaysia is expected to grow to 20% by 2020.

To date, the registered market-based financing platforms have cumulatively raised a total of RM28 million for 50 small and medium enterprises since coming into operations in the middle of 2016.