Singapore is turning up the heat on banks with crypto skin in the game. The Monetary Authority of Singapore has directed financial institutions holding any cryptoasset exposure to notify the regulator and engage with it on prudential treatment before a full Basel-aligned framework kicks in, now deferred to January 1, 2027, or potentially later.
What MAS is actually requiring
During this transitional period, MAS has proposed that locally incorporated banks cap their exposure to cryptoassets on permissionless blockchains at 2% of Tier 1 capital. Tier 1 capital is essentially a bank’s core financial cushion, the highest-quality reserves regulators use to measure a bank’s health.
Singapore’s approach tracks closely with the Basel Committee on Banking Supervision’s framework for cryptoasset exposures. MAS is essentially saying: we’ll follow the international lead, but we’re not going to let banks operate in the dark while we wait.
The AI cyber taskforce that arrived alongside it
