Singapore Delays Update to Crypto Rules for Banks Until 2027

The Monetary Authority of Singapore (MAS) has postponed the implementation of new crypto prudential standards for banks until 2027. This delay extends the original start date from January 1, 2026, following feedback from the crypto industry that raised concerns regarding the proposed risk classifications. Many industry participants, including Coinbase, warned that these classifications could hinder innovation by unfairly penalizing assets on permissionless blockchains. The updated regulations, aligned with Basel Committee standards, will obligate banks to maintain capital reserves proportionate to their crypto exposures based on risk levels. Higher risk cryptoassets will attract heavier capital requirements, while stable, reserve-backed assets might be treated more favorably. The MAS aims to balance regulatory measures that protect consumers while fostering innovation in Singapore's fintech landscape, particularly as competition from other blockchain hubs increases. The decision highlights ongoing efforts to align with global regulatory standards while supporting responsible crypto innovation.

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