Gate News message, April 22 — Singapore’s Monetary Authority (MAS) has released a consultation paper to establish more favorable regulatory capital guidance for crypto assets on permissionless blockchains (public blockchains) ahead of implementing the Basel new crypto asset capital rules.
Under the Basel framework, crypto assets are divided into two groups: Group 1 includes tokenized traditional assets and stablecoins with lower capital requirements, while Group 2 covers other crypto assets with higher requirements. Rather than automatically classifying all public blockchain crypto assets as Group 2, Singapore’s MAS proposes allowing such assets to be reclassified as Group 1 assets with lower risk weights and more lenient prudential requirements, provided they meet certain principle-based conditions. This approach aims to achieve regulatory technology neutrality.
Specifically, Singapore-registered banks’ exposure to Group 1 public blockchain crypto assets must not exceed 2% of Tier 1 capital, and any related issuances that create liabilities on the bank’s balance sheet must not exceed 5% of Tier 1 capital.
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