The Monetary Authority of Singapore (MAS) has announced its strategic partnership with key regulatory bodies from Japan, Switzerland, and the United Kingdom. The MAS, along with the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the UK’s Financial Conduct Authority (FCA), is set to embark on joint digital asset pilots. These pilots will focus on areas such as fixed income, foreign exchange, and asset management products.
This collaboration builds upon Singapore’s ongoing Project Guardian, initiated in 2022, where the MAS worked closely with 15 financial institutions to conduct asset tokenization pilots. These experiments showcased the considerable potential for transaction efficiency in the realm of digital assets.
“As the pilots grow in scale and sophistication, there is a need for closer cross-border collaboration among policymakers and regulators,” stated MAS. To address this, the MAS, along with FSA, FCA, and FINMA, has established a Project Guardian policymaker group. This group aims to delve into policy and accounting discussions, identify potential risks, and address legal gaps related to digital assets and tokenized solutions.
Singapore Promoting Standardization and Interoperability
The collaborative initiative focuses on developing common standards for digital asset networks and identifying best practices across various jurisdictions. Key areas of focus include interoperability, regulatory sandboxes, and educational efforts related to the digital currency industry. According to Leong Sing Chiong, MAS Deputy Managing Director of Markets and Development, this partnership aims to “promote the development of common standards and regulatory frameworks that can better support cross-border interoperability, as well as sustainable growth of the digital asset ecosystem.”
Singapore’s MAS has been actively engaged in international collaborations concerning digital currencies. In September 2023, MAS successfully completed a joint test involving the cross-border trading and settlement of wholesale central bank digital currencies. This test, conducted in collaboration with the Bank for International Settlements, and the central banks of France and Switzerland, marked another milestone in Singapore’s global efforts towards digital currency innovation.