The post Singapore Collaborates with UK, Switzerland, and Japan Policymakers to Promote Responsible Development of Digital Assets appeared first on Coinpedia Fintech News According to the Monetary Authority of Singapore’s Monday press release, regulators in Singapore, Japan, the ...
The post Singapore Collaborates with UK, Switzerland, and Japan Policymakers to Promote Responsible Development of Digital Assets appeared first on Coinpedia Fintech News
According to the Monetary Authority of Singapore’s Monday press release, regulators in Singapore, Japan, the U.K., and Switzerland are preparing asset tokenization tests for fixed income, foreign currency, and asset management products.
The Project Guardian
As per the press release, the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the Financial Conduct Authority (FCA) of the United Kingdom are collaborating with the Monetary Authority of Singapore (MAS) to advance digital asset pilots in fixed income, foreign exchange, and asset management products.
Working with fifteen financial institutions, MAS has conducted industry pilots on asset tokenization in fixed income, foreign currency, and asset management products under the auspices of Project Guardian. These trials have shown that tokenization has the potential to significantly improve market and transaction efficiency. Policymakers and regulators must work together more closely across borders as the pilots get larger and more complex. For this reason, FINMA, FCA, and FSA constitute the policymaker group for Project Guardian that MAS has formed.
Targets of The Legislators –
As per the announcement, the policymakers are specifically aiming to achieve the below-mentioned goals –
- In-depth conversations about the handling of digital assets in law, policy, and accounting;
- Determine any hazards and any legal or policy gaps that may be pertinent to tokenized solutions;
- Investigate creating uniform guidelines for digital asset network architecture and promoting industry best practices across different regulatory bodies;
- Encourage strict interoperability requirements to facilitate the development of cross-border digital assets;
- If appropriate, use regulatory sandboxes to support industry pilots for digital assets; and
- Encourage industry and regulators to share information.
Words From The Officials
“MAS’s partnership with FSA, FCA, and FINMA shows a strong desire among policymakers to deepen our understanding of the opportunities and risks arising from digital asset innovation,” stated Mr. Leong Sing Chiong, Deputy Managing Director (Markets and Development), MAS. By working together, we seek to advance the creation of uniform guidelines and legal frameworks that will facilitate cross-border communication and the long-term expansion of the digital asset ecosystem.
Ending Note…
These tests aim to explore the potential benefits of asset tokenization, such as increased liquidity, efficiency, and accessibility in the financial markets. The collaboration between these regulatory authorities demonstrates a global effort to embrace and understand the implications of digital assets in traditional financial sectors.