Singapore's Central Bank Partners with European Countries and Japan for Crypto Cooperation

Initiating Joint Digital Asset Pilots

The Monetary Authority of Singapore (MAS) has announced plans to collaborate with the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the United Kingdom's Financial Conduct Authority (FCA) to promote joint digital asset pilots. The MAS aims to conduct pilots related to fixed income, foreign exchange, and asset management products. This initiative is an extension of Singapore's ongoing asset tokenization project, Project Guardian, which has shown promising transaction efficiency.

Building Closer Cross-Border Collaboration

The MAS has established a Project Guardian policymaker group comprising the FSA, the FCA, and FINMA to facilitate policy and accounting discussions. The group will also identify potential risks and legal gaps related to digital assets and tokenized solutions. Additionally, the project aims to develop common standards for digital asset networks and find best practices across jurisdictions. Other areas of focus include interoperability, regulatory sandboxes, and education in the digital currency industry.

Promoting Development of Common Standards

The MAS hopes that its partnership with the FSA, the FCA, and FINMA will deepen policymakers' understanding of the opportunities and risks associated with digital asset innovation. The collaboration aims to establish common standards and regulatory frameworks that support cross-border interoperability and sustainable growth of the digital asset ecosystem.

Active Collaboration in the Digital Currency Field

Singapore has been actively working with global financial authorities in the digital currency domain. In September 2023, the MAS completed a joint test of cross-border trading and settlement of wholesale central bank digital currencies in collaboration with the Bank for International Settlements and the central banks of France and Switzerland.