Monetary Authority (Amendment) (No.2) Law, 2020 (Law 15 of 2020)

Summary

This is an amending Act that updates the Monetary Authority Law (2020 Revision), CIMA's own governing statute. It formally brings the Virtual Asset (Service Providers) Law, 2020 within the definition of a regulatory law administered by CIMA, adds a financial inclusion objective to CIMA's principal functions, and creates a new discretionary power for CIMA over sandbox licensees.

• Regulatory laws list expanded: The Virtual Asset (Service Providers) Law, 2020 is added to the definition of regulatory laws in the Monetary Authority Law, bringing virtual asset service providers formally within CIMA's regulatory remit.
• New principal function: CIMA's principal functions under section 6(3) are expanded to include endeavouring to promote and facilitate innovation, competition, consumer benefits and technology and services that encourage financial inclusion.
• New sandbox power (section 6A): CIMA may, at any time during the term of a sandbox licence issued under the Virtual Asset (Service Providers) Law, 2020, waive, modify, or impose additional regulatory requirements on the sandbox licensee, based on the innovative technology or delivery methods used, the nature and complexity of the activity, or the licensee's supervisory needs.

The Act itself does not impose new compliance duties on the industry generally; rather it gives CIMA a discretionary supervisory tool specific to virtual asset sandbox licensees and updates CIMA's statutory functions and the scope of laws it regulates. It comes into force on a date (or dates) to be appointed by Cabinet Order, which was not specified in this text.

Key obligations

• CIMA may waive, modify, or impose additional regulatory requirements on a sandbox licence holder under the Virtual Asset (Service Providers) Law, 2020, at any time during the licence term

Applies to

virtual asset service providers, sandbox licence holders under the Virtual Asset (Service Providers) Law, 2020

Deadlines

• such date as may be appointed by Order made by the Cabinet: Commencement of the Act (different dates may be appointed for different provisions)

Related documents

• This document amends Monetary Authority Law (2020 Revision)