Singapore will optimize the regulation of cryptocurrency capital, and public chain assets may no longer be uniformly classified as high-risk
The Monetary Authority of Singapore has released a consultation document proposing to establish a more friendly regulatory capital guideline for the treatment of crypto assets on permissionless blockchains before implementing the Basel capital requirements for crypto assets.
It is reported that the Basel capital requirements for crypto assets categorize them into two groups. The first group involves tokenized traditional assets and stablecoins, which are subject to lower capital requirements.
The second group involves crypto assets that do not meet the above conditions. The Monetary Authority of Singapore intends to abandon the practice of categorizing all crypto assets on permissionless blockchains as part of the second group, allowing them to be classified as first group crypto assets with lower risk weights and more lenient prudential requirements, provided they meet a series of principled requirements. Specifically, for banks registered in Singapore, the risk exposure of permissionless blockchain crypto assets classified as first group crypto assets must not exceed 2% of the bank's Tier 1 capital, and if the issuance creates liabilities at the bank level, the issuance scale must not exceed 5% of Tier 1 capital.
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