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Singapore Delays Basel-Based Crypto Bank Capital Rules to 2027

Singapore Delays Basel-Based Crypto Bank Capital Rules to 2027

The Monetary Authority of Singapore postpones the implementation of Basel crypto asset capital requirements for banks to 2027 or later, following industry feedback on regulatory arbitrage concerns.

Summary

The Monetary Authority of Singapore (MAS) has delayed the implementation of new bank capital rules for crypto assets, shifting the start date from January 1, 2026, to January 1, 2027, or later. The decision follows feedback from stakeholders such as Circle and Coinbase, who raised concerns about potential regulatory arbitrage. Hong Kong, however, is proceeding with the adoption of Basel Committee crypto asset standards as planned, aiming to optimize regulations for stablecoins and other crypto assets.

Terms & Concepts
  • Basel Committee Standards: Global banking regulatory guidelines set by the Basel Committee on Banking Supervision, aimed at strengthening the regulation, supervision, and practices of banks worldwide.
  • Regulatory Arbitrage: The practice of capitalizing on regulatory differences between jurisdictions to reduce compliance costs or gain competitive advantages.
  • Bank Capital Rules for Crypto Assets: Regulations that set capital requirements for banks’ exposure to cryptocurrency-related assets, influencing risk management and stability.