The Monetary Authority of Singapore (MAS) to Cooperate with European Countries and Japan on Crypto Initiatives
The Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator, is planning to start crypto-related cooperation with some European countries and Japan. The MAS officially announced on Oct. 30 that it is partnering with the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA) to promote joint digital asset pilots. The authority specifically seeks to carry out such pilots in relation to fixed income, foreign exchange, and asset management products.
Building Upon Project Guardian
The initiative builds upon Singapore’s ongoing asset tokenization project known as Project Guardian, which was launched in 2022. Under Project Guardian, Singapore’s central bank collaborated with 15 financial institutions to complete pilots on asset tokenization, demonstrating significant potential for transaction efficiency.
Establishing a Project Guardian Policymaker Group
“As the pilots grow in scale and sophistication, there is a need for closer cross-border collaboration among policymakers and regulators,” the MAS wrote. To address this, the regulator has established a Project Guardian policymaker group comprising the FSA, the FCA, and FINMA. The group aims to initiate policy and accounting discussions, identify potential risks and legal gaps related to digital assets and tokenized solutions, explore the development of common standards for digital asset networks’ design, and find best practices across jurisdictions.
Promoting Common Standards and Regulatory Frameworks
MAS Deputy Managing Director of Markets and Development, Leong Sing Chiong, stated that MAS’ partnership with the FSA, FCA, and FINMA demonstrates a strong desire among policymakers to deepen their understanding of opportunities and risks arising from digital asset innovation. The partnership aims to promote the development of common standards and regulatory frameworks that can support cross-border interoperability and sustainable growth of the digital asset ecosystem.
Singapore’s Collaboration in the Digital Currency Field
Singapore has been actively collaborating with global financial authorities in the field of digital currency. In September 2023, MAS completed a joint test of cross-border trading and settlement of wholesale central bank digital currencies in collaboration with the Bank for International Settlements and the central banks of France and Switzerland.
Hot Take: Strengthening Cross-Border Cooperation for Digital Asset Innovation
The Monetary Authority of Singapore (MAS) is taking significant steps to strengthen cross-border cooperation with European countries and Japan in the realm of digital asset innovation. By partnering with prominent financial regulators, MAS aims to promote joint digital asset pilots and explore the development of common standards and regulatory frameworks. This collaboration will not only enhance cross-border interoperability but also support sustainable growth in the digital asset ecosystem. As Singapore continues to actively collaborate with global financial authorities, it solidifies its position as a leading hub for digital currency initiatives.
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