The Monetary Authority of Singapore Launches Project Guardian
The Monetary Authority of Singapore (MAS) has initiated Project Guardian in collaboration with 15 financial institutions, including the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA). This project is part of Singapore’s ongoing efforts to regulate crypto assets and establish itself as a leading financial center.
MAS Aims to Develop Cross-Border Crypto Regulatory Framework
Project Guardian, as per MAS’s official announcement, will focus on advancing crypto pilots in fixed income, foreign exchange, and asset management products. While cryptocurrencies enable near-instant cross-border transactions, they are also prone to misuse. To combat illicit activities, MAS Singapore has formed the project guardian policymaker group consisting of FSA, FCA, and FINMA.
In this regard, Leong Sing Chiong, Deputy Managing Director at MAS, expressed the desire for policymakers to deepen their understanding of digital asset innovation. The partnership aims to develop common standards and regulatory frameworks that support cross-border interoperability and sustainable growth of the digital asset ecosystem.
Singapore’s Ongoing Efforts for Crypto Regulation
Singapore has been taking various steps towards crypto regulation. It recently launched dedicated task forces to combat tech and crypto crimes. Additionally, MAS has been granting licenses to crypto firms. Coinbase obtained a Major Payment Institution (MPI) license from MAS on October 1. Furthermore, Upbit received an in-principle approval (IPA) while awaiting full license approval.
The Influence of Factors on Crypto Adoption in Singapore
According to Statista, 54% of respondents in February 2023 were influenced to adopt cryptocurrencies to diversify their investment portfolio. Friends and family were a significant influence for 53% of participants in Singapore.
Hot Take: Promoting Responsible Digital Asset Innovation
The launch of Project Guardian by MAS Singapore, in collaboration with international financial institutions, highlights the commitment to regulating crypto assets. By developing cross-border regulatory frameworks and standards, the aim is to ensure the responsible growth of the digital asset ecosystem while addressing the risks associated with illicit activities. Singapore continues to make strides in crypto regulation, granting licenses to crypto firms and establishing task forces to combat tech and crypto crimes. The efforts reflect the growing importance of cryptocurrencies in diversifying investment portfolios and the need for a secure and transparent digital asset environment.
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