Singapore’s central bank and financial regulator, the Monetary Authority of Singapore (MAS), intends to begin joint crypto-related pilots with several European and Japanese nations.
The 30th of October marked the official announcement by the MAS that it will collaborate with the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the Financial Conduct Authority of the United Kingdom (FCA) to promote joint digital asset pilots. The authority intends to conduct pilots on fixed-income, foreign exchange, and asset management products.
The initiative is a continuation of Singapore’s ongoing asset tokenization project, known as Project Guardian, which was launched in 2022.
Singapore’s central bank collaborated with 15 financial institutions under the MAS Project Guardian to complete pilots on asset tokenization, which demonstrated a significant potential for transaction efficiency.
“As the pilots grow in scale and sophistication, there is a need for closer cross-border collaboration among policymakers and regulators,” the MAS wrote, adding that the regulator has established a Project Guardian policymaker group consisting of the FSA, the FCA, and FINMA.
The group intends to initiate policy and accounting discussions, as well as identify potential risks and legal voids associated with digital assets and tokenized solutions.
In addition to investigating the development of common standards for designing digital asset networks, the project endeavors to identify best practices across multiple jurisdictions. Other work vectors in the digital currency industry include interoperability, regulatory sandboxes, and education.
Leong Sing Chiong, deputy managing director of markets and development at MAS, stated, “The partnership between MAS and the FSA, the FCA, and FINMA demonstrates a strong desire on the part of policymakers to increase our understanding of the opportunities and risks associated with digital asset innovation.” He continued:
“Through this partnership, we hope to promote the development of common standards and regulatory frameworks that can better support cross border interoperability, as well as sustainable growth of the digital asset ecosystem.”
In the field of digital currency, Singapore has been actively collaborating with global financial authorities. In September 2023, Singapore’s Monetary Authority of Singapore (MAS) and the central banks of France and Switzerland conducted a joint test of the cross-border trading and settlement of wholesale central bank digital currencies.
