Singapore Proposes Crypto Capital Framework Shift for Banks
Singapore's Monetary Authority (MAS) is charting a new course for bank-held cryptoassets, diverging from global standards with a proposal that could reshape institutional adoption. The April 2026 consultation paper offers a principle-based alternative to Basel's punitive 1,250% risk weight for permissionless blockchain assets—a direct response to industry pushback against last year's draft framework.
This pivot acknowledges the reality of stablecoins like USDC and USDT circulating on public blockchains, while maintaining MAS's reputation for calibrated innovation. By deferring implementation to 2027, Singapore buys time to refine what 'workable' means for banks navigating the tension between blockchain's promise and regulatory risk.
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