- Singapore’s central bank postponed new rules on crypto asset management for banks to 2027.
- The delay follows concerns from the crypto industry about the impact of the original start date in early 2026.
- The proposed standards will require banks to hold more capital against higher-risk crypto assets, especially those on public blockchains.
- Industry feedback warned the rules could hurt innovation by penalizing assets built on open, permissionless blockchains.
- Singapore continues to see strong interest in crypto from both retail and institutional investors.
The Monetary Authority of Singapore (MAS) announced it will delay the rollout of new capital rules for banks holding crypto assets until the start of 2027, moving the start date from January 1, 2026. The decision comes after feedback from industry participants who raised concerns during a recent consultation.
The MAS stated that it will use the additional year to continue evaluating industry developments and to ensure the country’s rules align with global regulatory standards. The new regulations, based on the Basel Committee’s standards, will require banks to maintain specific capital reserves depending on how risky their crypto assets are.
Under the proposed framework, assets on public, permissionless blockchains—blockchains open for anyone to use—will face stricter requirements. The capital buffer for the most volatile assets could reach up to 1,250%. More stable assets, such as those backed by reserves, would receive less strict treatment. Some industry participants, including Coinbase, suggested the risk classifications might go too far, potentially discouraging innovation. “We are hopeful that this delay might signal a reconsideration of the contemplated prudential requirements in order for Singaporean institutions to better and more fully participate in innovative technology,” said Coinbase’s Singapore Country Director, Hassan Ahmed, in a statement to Decrypt.
Singapore was an early adopter of digital asset regulations, introducing its initial framework in 2020. According to a Straits Times report, around 26% of Singapore’s population owned cryptocurrency as of April. A report on fintech funding showed that web3 projects made up 64% of fintech investment in 2024, totaling $742 million.
Banks in Singapore, such as DBS, have started offering tokenized products on platforms like Ethereum. The MAS rules aim to clarify how banks should account for digital assets on their balance sheets and define which crypto assets are considered higher or lower risk. Industry feedback suggested Singapore could face disadvantages by adopting these rules ahead of other financial centers. Ahmed noted that as other regions adopt similar technology, global competition is increasing.
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