Soda Labs

Monetary Authority of Singapore

The regulator that priced the risk instead of banning it

Regulator or standard-setterAsia-PacificConfidential with disclosure

Confidentiality is workable so long as the regulated firm can identify the parties and disclose on demand. Encrypted amounts are not the thing being restricted.

What Monetary Authority of Singapore actually says

Worth reading closely because it is the road not taken elsewhere. Faced with the same assets that Dubai and Malaysia prohibited outright, Singapore's regulator chose enhanced obligations instead, and said so in Parliament: privacy coins, privacy wallets and mixers are to be risk-assessed and monitored, not barred. Firms are told to pay special attention to technologies that favour anonymity, which is a supervisory expectation rather than a listing rule. MAS has also observed that most licensed providers decline to offer such assets anyway, which is the market making a commercial choice rather than the regulator making it for them. The transfer rules are strict in the other direction, with no minimum value at all.

The instruments that matter

Notice PSN02
providers must risk-assess privacy tokens before dealing and pay special attention to technologies that favour anonymity, with enhanced transaction monitoring, but no prohibition
The position stated in Parliament, October 2022
privacy coins, privacy wallets and mixers attract enhanced obligations rather than prohibition
No de minimis on transfers
at or below SGD 1,500 originator and beneficiary names and account numbers still travel; above it the originator's identity must be verified
COSMIC, live since 1 April 2024
a statutory carve-out from banking confidentiality letting six banks share customer risk information with each other rather than publicly

What this means for confidential transactions

Bubble is built for exactly this shape of obligation: amounts and balances live on chain as ciphertexts, computation happens without decryption, and the only disclosure path is an on-chain access list through which an authorized party - an auditor, a supervisor, a counterparty - can request scoped decryption. That is confidentiality from the public, not from the regulator.

Compliant by default.

See how selective disclosure satisfies a supervisor without publishing your book to the world.