The Financial Authority of Singapore (MAS) will delay the rollout of latest cryptoasset capital guidelines for banks to at the very least 2027, following business suggestions calling for extra time and international coordination.
The choice comes after MAS sought feedback earlier this yr on amendments to the capital and liquidity frameworks for Singapore-incorporated banks to align with Basel Committee requirements on the remedy and disclosure of cryptoasset exposures.
Respondents supported the framework however warned that implementing it forward of different jurisdictions might result in regulatory arbitrage.
A number of additionally known as for flexibility in treating belongings on permissionless blockchains, which might in any other case fall underneath Group 2 with a 1250% threat weight.
MAS stated it’ll proceed to observe international regulatory developments and advances in blockchain expertise earlier than setting a ultimate implementation date.
Till then, banks should seek the advice of MAS and apply prudential remedy largely aligned with the session paper.
Individually, new guidelines for Further Tier 1 (AT1) and Tier 2 capital devices will take impact on 1 January 2026.
These devices can solely be issued to non-retail buyers in Singapore, although the restriction applies solely at issuance.
Banks should embody clauses in agreements with intermediaries prohibiting retail gross sales, whereas MAS has reminded intermediaries to not distribute or facilitate retail entry to such devices.
MAS reiterated that AT1 and Tier 2 devices are advanced and high-risk, and usually unsuitable for retail buyers.
Devices issued earlier than 2026 will proceed to qualify as regulatory capital underneath a grandfathering association with no expiry, offered they meet different necessities underneath MAS Discover 637.
The regulator can even proceed with clarifications to Discover 637, together with updates on capital buffers and credit score threat mitigation underneath artificial securitisations.
Featured picture: Edited by Fintech Information Singapore, based mostly on picture by vector_lovers by way of Freepik
