April 19, 2024
Singapore's MAS Forges Alliance with FSA, FINMA, and FCA for Joint Digital Asset Pilots
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Singapore’s MAS Forges Alliance with FSA, FINMA, and FCA for Joint Digital Asset Pilots

The Monetary Authority of Singapore (MAS), the nation’s primary financial regulatory body, has announced plans to engage in collaborative efforts related to cryptocurrency with certain European countries and Japan.

On October 30, MAS revealed its formal partnership with Japan’s Financial Services Agency (FSA), Switzerland’s Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA). The goal is to advance joint digital asset pilots, specifically targeting fixed-income, foreign exchange, and asset management products.

This initiative is an extension of Singapore’s existing Project Guardian, an ongoing project established in 2022, where MAS worked alongside 15 financial institutions to conduct trials on asset tokenization. These trials exhibited significant potential for enhancing transaction efficiency.

MAS emphasized the necessity for enhanced cross-border cooperation among regulators and policymakers as these pilots expand in scale and complexity. Consequently, the MAS has formed a policymaker group under Project Guardian, including the FSA, FCA, and FINMA. The purpose of this group is to initiate discussions on policy and accounting, identify potential risks and legal gaps associated with digital assets and tokenized solutions, and explore the establishment of universal standards for designing digital asset networks.

Leong Sing Chiong, MAS’s deputy managing director of markets and development, expressed, “MAS’ collaboration with the FSA, the FCA, and FINMA reflects a strong commitment among policymakers to deepen our comprehension of the opportunities and risks in digital asset innovation.”

The objective of this partnership is to encourage the creation of shared standards and regulatory frameworks that can better facilitate cross-border interoperability and foster sustainable growth within the digital asset ecosystem.

Singapore has been actively engaging in collaborative efforts with global financial authorities in the realm of digital currencies. In September 2023, MAS concluded a joint test for cross-border trading and settlement of wholesale central bank digital currencies in partnership with the Bank for International Settlements, the central banks of France, and Switzerland.

Image by pixabay

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