Singapore is working on crypto pilots with Japan, Switzerland, and the United Kingdom
The Monetary Authority of Singapore is looking to increase international cooperation on its asset tokenization initiative.
The Singaporean government’s financial regulator, the Monetary Authority of Singapore (MAS), wants to begin working with its counterparts in Europe and Japan on cryptocurrency issues.
In a formal announcement on October 30, the MAS said it would be working with the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the Financial Conduct Authority (FCA) of the United Kingdom to support joint digital asset tests. The regulator is keen to test the waters with fixed income, foreign currency, and asset management instruments.
Singapore started a project in 2022 called Project Guardian to tokenize assets, and this project builds on that work. Pilots on asset tokenization conducted by the Monetary Authority of Singapore (MAS) in conjunction with 15 financial institutions showed promising results, indicating that the practice might greatly improve the efficiency of financial transactions.
The group’s mission is to spark conversations on accounting and policy for digital assets, as well as to spot any loopholes in the law that need filling. The study also aims to research existing norms for digital asset network design and identify regionally applicable best practices. Work trajectories in the digital currency sector might include focus on interoperability, regulatory sandboxes, and industry education.
Leong Sing Chiong, deputy managing director of markets and development at MAS, noted that the organization’s collaboration with the Financial Conduct Authority (FCA), the Financial Supervisory Authority (FSA), and FINMA demonstrates a “strong desire among policymakers to deepen our understanding of the opportunities and risks arising from digital asset innovation.” He continued:
“To better support cross-border interoperability and the long-term expansion of the digital asset ecosystem, we seek to foster the creation of shared standards and regulatory frameworks via this collaboration.”
When it comes to digital money, Singapore has been working closely with regulatory bodies throughout the world. The Monetary Authority of Singapore (MAS) and the Bank for International Settlements (BIS) and the central banks of France and Switzerland successfully concluded a joint test of wholesale digital currency trading and settlement in September 2023.