Singapore's Central Bank Forges Crypto-Cooperation with International Financial Regulators
Summary:
The Monetary Authority of Singapore (MAS) is partnering with Japan's Financial Services Agency, the Swiss Financial Market Supervisory Authority, and the UK's Financial Conduct Authority to foster joint digital asset pilots. This initiative emerges from Singapore's ongoing asset tokenization project, Project Guardian. Launched in 2022, it showcased significant potential for transaction efficiency. The MAS is keen to initiate policy debates, identify potential risks, and explore the development of common standards for digital asset networks. The project seeks to promote cross-border interoperability and the sustainable growth of the digital asset ecosystem.
Singapore's central bank and financial regulator, the Monetary Authority of Singapore (MAS), is preparing to collaborate on crypto-related matters with some European countries and Japan. The MAS officially declared on October 30 that it is teaming up with Japan's Financial Services Agency (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the Financial Conduct Authority (FCA) of the United Kingdom to encourage collaborative digital asset test-runs. The regulator is particularly interested in conducting these tests in the areas of fixed income, foreign exchange, and asset management products.
This initiative is an extension of Singapore's existing asset tokenization scheme, Project Guardian, launched in 2022. The MAS Project Guardian saw Singapore's central bank partner with 15 financial firms to execute asset tokenization test-runs, showcasing remarkable potential for transactional efficiency.
Increasing the scale and sophistication of these tests necessitates stronger cross-border collaboration among policy-makers and regulators, a statement from the MAS noted. As such, the regulator introduced a Project Guardian policy-making group, which incorporates the FSA, the FCA, and FINMA. The group will instigate policy and accounting debates, detect potential risks and legal loopholes related to digital assets and tokenized solutions.
The project also intends to explore the creation of universal standards for the design of digital asset networks and discover best practices in different jurisdictions. Other areas of focus include interoperability, regulatory sandboxes, and digital currency industry-related education.
Leong Sing Chiong, Deputy Managing Director of Markets and Development at MAS, maintains that the collaboration with the FSA, FCA, and FINMA reflects the determination among policymakers to deepen their comprehension of the opportunities and risks from digital asset innovation. He added that this partnership would foster the development of widespread standards and regulatory systems to enhance cross-border interoperability and the sustainable growth of the digital asset ecosystem.
Singapore has shown active collaboration with international financial authorities in the realm of digital currency. In September 2023, Singapore's MAS concluded a joint examination of cross-border trading and settlements of wholesale central bank digital currencies alongside the Bank for International Settlements and central banks from France and Switzerland.
Published At
10/30/2023 11:24:56 AM
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