The Monetary Authority of Singapore (MAS) has initiated a significant collaboration with financial regulators from Japan, Switzerland, and the United Kingdom to foster the development of cross-border digital currency products and services.
In a statement released on October 30, 2023, the MAS announced the formation of a policymaker group, including representatives from Japan’s FSA, the UK’s FCA, and Switzerland’s FINMA. The primary objective of this collaboration is to align regulations and standards, promoting cross-border cooperation and the sustainable growth of the global digital asset ecosystem.
Previously, the MAS established partnerships with 15 financial companies in Singapore for pilot projects within its Project Guardian Scheme. These projects revolved around digital tokens backed by assets like bonds, foreign currencies, and investment funds. Notably, the initial results demonstrated the potential for digital tokens to significantly enhance the efficiency of trading these assets.
According to the regulator, these projects have also led to an increased demand for regulators to establish common rules and standards for cross-border use of digital tokens.
“As the pilots grow in scale and sophistication, there is a need for closer cross-border collaboration among policymakers and regulators,”
the regulator stated in its announcement.
Leong Sing Chiong, the Deputy Managing Director at MAS, expressed optimism about this collaboration and stated, “Through teamwork between regulators, we hope to support digital token systems that work seamlessly across borders, thereby facilitating the sustainable growth of digital currency use.”
Earlier in August 2023, the MAS finalized regulations designed to ensure the reliability of stablecoins or any digital tokens pegged to the Singapore dollar and other major currencies for various payment and transaction purposes.
@MAS_sg has announced the features of a new regulatory framework that seeks to ensure a high degree of value stability for #stablecoins regulated in #Singapore. https://t.co/j12QambGIJ pic.twitter.com/LBUoOGY16P
— MAS (@MAS_sg) August 15, 2023
Also, in July 2023, the regulator introduced draft legislative amendments outlining new guidelines for crypto companies to follow, with a focus on safeguarding the assets of Singaporean citizens. These guidelines are currently open for public feedback and are expected to become formal legislation by the end of 2023.
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