October 15, 2025
By Our Correspondent
The Monetary Authority of Singapore (MAS) had originally intended to apply new prudential rules for banks that deal with cryptocurrencies on January 1, 2026, but has now delayed their implementation until early 2027.
Concerns raised by the industry over the timeframe and handling of blockchain-based assets led to the decision. Banks will be required to maintain capital reserves against their cryptocurrency exposures in accordance with their risk classifications under the revised regulations, which are based on the standards set by the Basel Committee on Banking Supervision.
Capital requirements will be higher for riskier crypto assets, such those on permissionless public blockchains. While extremely volatile assets would need up to 1250% capital support, stablecoins backed by suitable reserve assets might be given preferential treatment.
Industry participants countered that Singapore would have been among the first jurisdictions to adopt the Basel crypto asset framework by 2026, which could have put local banks at a regulatory disadvantage.
The suggested risk classifications, according to the respondents, would unjustly penalize assets created on public blockchains, which could impede innovation.
Coinbase was one of the commenters. According to Hassan Ahmed, its country director for Singapore, the MAS prudential regulations may lead to overcapitalization even though their goal is to improve banks’ risk management systems.
“To maintain uniformity and encourage responsible innovation, we will keep an eye on advancements in global standards and crypto-asset regulation,” MAS said.
With the introduction of its first regulations for digital assets in 2020, Singapore was among the first countries to establish such a framework. The nation has restricted some retail activities while promoting institutional adoption in an effort to strike a balance between innovation and financial stability.
However, the influence of cryptocurrencies in Singapore’s financial scene is still growing. Around 26% of Singaporeans owned cryptocurrencies as of April of this year, according to the Straits Times, and web3 investments made up 64% of all fintech funding in 2024, or USD 742 million.
Institutional interest is also rising; 57% of local investors intend to increase their exposure to cryptocurrencies, per Sygnum Bank’s Future of Finance Report.
