Singapore proposes 2% bank crypto cap and delays Basel-aligned rules to 2027

Singapore is tightening oversight of banks’ cryptoasset exposures while also preparing lenders for a longer-term shift to quantum-resistant cybersecurity. The Monetary Authority of Singapore has told financial institutions with any cryptoasset exposure to notify it and engage on prudential treatment, and has proposed that locally incorporated banks limit exposure to cryptoassets on permissionless blockchains to 2% of Tier 1 capital during the transition to a broader Basel-aligned framework now deferred to January 1, 2027, or later. Separately, MAS is preparing supervisory expectations later in 2026 that would require banks to inventory cryptographic assets such as encryption keys, certificates, signatures and algorithms, identify systems vulnerable to future quantum attacks and phase in post-quantum upgrades over time.