Amid ongoing global demand for cryptocurrency, which is significantly surging, many partnerships and collaborations have been observed in the past few months. Recently, the Monetary Authority of Singapore (MAS) also gathered everyone’s attention as it announced its cooperation in...
Amid ongoing global demand for cryptocurrency, which is significantly surging, many partnerships and collaborations have been observed in the past few months. Recently, the Monetary Authority of Singapore (MAS) also gathered everyone’s attention as it announced its cooperation in the crypto-related sector.
Global collaboration in the Crypto industryRecently, on October 30, 2023, the MAS announced that it is
partnering with several major European countries, as well as the Financial Services Agency of Japan, the Swiss Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA).The main objective of MAS is to promote digital asset pilots, with a greater focus on fixed-income, foreign exchange, as well as asset management products, including ETFs. This initiative will be built upon Singapore’s tokenization project, known as Project Guardian, which was launched in the year 2022.
To complete Project Guardian, MAS’s central bank collaborated with 15 financial institutions across the globe to make this pilot successful on asset tokenization. These tests showed that it could greatly improve transaction efficiency. However, MAS also stated, “As the pilots grow in scale and sophistication, there is a need for closer cross-border collaboration among policymakers and regulators.”
The Project Guardian policymaker group
There MAS added a Project Guardian policymaker group which consists of FSA, FCA, and FINMA. The aim of this group is to:
- Advance discussions on legal, policy, and accounting treatment of digital assets;
- Identify potential risks and possible gaps in existing policies and legislation relevant to tokenized solutions.
- Explore the development of common standards for the design of digital asset networks and market best practices across various jurisdictions;
- Promote high standards of interoperability to support cross-border digital assets development;
- Facilitate industry pilots for digital assets through regulatory sandboxes, where applicable; and
- Promote knowledge sharing among regulators and industry.
“MAS’ 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. 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.”
Mr Leong Sing Chiong, Deputy Managing DirectorIt has been observed that for the past few years, Singapore has been one such country that actively participated with the global financial authorities in the realm of cryptocurrency. Recently, on September 29, 2023, Singapore along with France and Switzerland successfully conducted cross-border trading using whole CBDCs.
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