• 29 May, 2024
News

Singapore Joins Global Digital Asset Alliance with Japan, Switzerland, and UK

In a groundbreaking move, the Monetary Authority of Singapore (MAS) has unveiled a strategic alliance with Japan’s Financial Services Agency (FSA), Switzerland’s Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA). The collaboration aims to spearhead discussions surrounding the legal, policy, and accounting aspects of digital assets.

Renowned crypto journalist Colin Wu of Wu Blockchain highlighted this significant development, underlining its potential to foster cross-border digital asset innovation, pilot programs, and knowledge exchange within regulatory spheres and industries.

According to a recent report,15 financial institutions have teamed up to conduct industry pilots to tokenize assets in fixed-income, foreign exchange, and asset management sectors. These pilots have already demonstrated the significant market efficiencies that can be achieved through tokenization.

However, as these initiatives grow in size and complexity, there is an urgent need for improved cross-border cooperation between regulators and policymakers. In response, MAS has established the Project Guardian policymaker group, which includes FSA, FCA, and FINMA.

The main goals of this group of policymakers are to further the conversation on the legal, policy, and accounting aspects of digital assets. In pursuing their goals, they also try pinpointing potential risks and shortcomings in the existing legislation about tokenized solutions. Additionally, the group seeks to establish universal standards for designing digital asset networks and promote best practices in the market across various jurisdictions.

Furthermore, the initiative aims to champion elevated levels of interoperability, bolstering the development of cross-border digital assets. Industry pilots for digital assets would also be facilitated through regulatory sandboxes, wherever applicable, and extensive knowledge sharing will be fostered among regulators and industry players.

In response to this monumental partnership, Mr. Leong Sing Chiong, Deputy Managing Director (Markets and Development) at MAS, emphasized the profound commitment among policymakers to gain deeper insights into the opportunities and risks stemming from digital asset innovation. Through this collective effort, the aspiration is to nurture the establishment of unified standards and regulatory frameworks that can effectively underpin cross-border interoperability, propelling sustainable growth within the digital asset ecosystem.

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