Key facts
- Banks are asking the Monetary Authority of Singapore (MAS) to remove an interim cap on their exposure to tokenized products.
- The MAS has reportedly softened its stance on crypto assets.
- Market participants argue that current restrictions are structurally inconsistent.
- Lower capital requirements for tokenization and stablecoins have been welcomed by the industry.
Banks are urging Singapore's financial regulator, the Monetary Authority of Singapore (MAS), to further relax its stance on crypto assets by removing an interim cap on the amount of the safest tokenized products that financial institutions are permitted to hold. While the MAS has shown some flexibility, market participants argue that the current restrictions impede deeper bank involvement in the digital asset sector. According to one market participant, Boon, the existing setup is "structurally inconsistent" and is expected to be relaxed or removed over time. The industry has welcomed the MAS's move to lower capital requirements for tokenization and stablecoins, but believes these measures are insufficient without addressing the exposure limits.