The United Kingdom and Singapore today agreed to a Memorandum of Understanding (MoU) aimed at boosting financial technology (FinTech) trade and cooperation between the two nations.
At the 7th Financial Dialogue held in Singapore today, the UK and the Southeast Asian nation renewed their commitment to the continued growth, investment, and technological innovation of the FinTech sector by signing an MoU on the UK-Singapore Fintech Bridge. The countries affirmed their investment in deepening the UK-Singapore Financial Partnership agreed upon in 2021 and discussed mutual priorities including sustainable finance, FinTech, and innovation, and agreed to continued cooperation in these areas. The FinTech Bridge builds on an agreement signed in 2016 and aims to provide structured engagement aiding the development of policy actions, the enhanced assessment of emerging issues including the development of distributed ledger technology and data sharing, and supports trade and investment flow between the two respective countries. The Financial Dialogue is an initiative undertaken by the Monetary Authority of Singapore – the country’s central bank, and the HM Treasury – the UK government’s economic and finance ministry.
World’s Leading Spaces for FinTech Investment Confirm Commitment
According to Innovate Finance’s 2022 Summer Investment Report, the UK and Singapore are two of the world’s leading jurisdictions for FinTech investment. In the first half of 2022, the total global investment in FinTech reached $59 billion, with the UK accounting for $9.1 billion of that. The country also boasts a 24% year-on-year increase from 2021 which is more than the rest of Europe combined. At the same time, Singapore was ranked as Southeast Asia’s leading jurisdiction for FinTech investment and places sixth globally.
Andrew Griffith, the Economic Secretary to the Treasury said:
The UK and Singapore are among the world’s leading jurisdictions for fintech investment – and today’s announcement will only accelerate growth and innovation in our respective sectors.
CEO of Innovate Finance, Janine Hirt added:
Innovate Finance welcomes this announcement. An MoU between UK and Singapore will deliver a strengthened framework for vital regulatory and policy discussions between the two countries, enable innovation across financial services, and ensure businesses based in both the UK and Singapore have the ongoing support for their ambitions for growth to be realised.
While discussing their mutual interest in the FinTech space, the countries addressed matters of sustainable finance, affirming their strong commitment to the implementation of International Sustainability Standards Board (ISSB) disclosure standards. Both countries have vowed to continue to work with the International Organisation of Securities Commissions (IOSCO), the ISSB, and various other international organizations to implement a comprehensive global baseline of sustainability-related disclosure standards.
Another key topic of discussion was the crypto-asset sector. Both countries shared their assessment of market developments, opportunities, trends, and long-term expectations for the sector. Key to this discussion was the risks and challenges associated with the industry as they pertain to financial stability and regulatory arbitrage while sharing their progress in strengthening the rules around consumer protection and developing the necessary regulatory framework for stablecoins. Both the UK and Singapore are in strong agreement in terms of the need to support the safe development of a digital asset ecosystem while ensuring risks posed by digital assets are managed accordingly. Both countries have pledged to actively participate in the shaping of robust global regulatory practices via engagement with international boards such as the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructure (CPMI), and IOSCO.
The UK and Singapore wrapped up by agreeing to a roadmap for engagements in sustainable finance, FinTech and innovation, and other areas of mutual interest, leading up to the next Dialogue which is scheduled to take place in London in 2023.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.