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The Monetary Authority of Singapore (MAS), which assumes the roles of the central bank and financial regulator, has announced its plans to initiate cooperation with some European countries and Japan in the crypto sector. MAS officially announced on October 30 that it has partnered with the Financial Services Agency (FSA) of Japan, the Financial Market Supervisory Authority (FINMA) of Switzerland, and the Financial Conduct Authority (FCA) of the United Kingdom to test joint crypto asset products.
Notable Steps from Singapore
With this step, MAS officials aim to conduct such pilot applications, especially in relation to fixed income, foreign exchange, and asset management products. This step is based on Singapore’s ongoing asset tokenization project known as “Project Guardian,” which was launched in 2022.
In this context, the Singapore Central Bank completed its pilot studies on asset tokenization by collaborating with 15 financial institutions and demonstrated its significant potential in terms of transaction efficiency. In this regard, MAS officials made the following statement:
“As the scale and complexity of pilot applications increase, there is a need for closer cross-border cooperation among policymakers and regulators.”
It is also noteworthy that the institution established a Project Guardian policymaker group consisting of FSA, FCA, and FINMA. This group aims to initiate policy and accounting discussions and identify potential risks and legal gaps related to crypto assets and tokenized solutions.
What Does the Project Cover?
The project also aims to research the development of common standards for designing crypto asset ecosystems and to find best practices in various jurisdictions. Other work vectors include interoperability, regulatory frameworks, and education related to the crypto industry. Leong Sing Chiong, Deputy Managing Director of Markets and Development at MAS, made the following comment regarding the matter:
“MAS’ partnership with FSA, FCA, and FINMA demonstrates a strong desire among policymakers to deepen our understanding of the opportunities and risks arising from crypto asset innovation.”
Singapore actively collaborates with global financial authorities in the crypto sector. In September, MAS completed a joint test for cross-border transfer and settlement of central bank digital currencies by signing a partnership agreement with the Bank for International Settlements, the Bank of France, and the Swiss National Bank.
