Singapore Postpones New Crypto Bank Rules to 2027 Amid Industry Feedback

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The Monetary Authority of Singapore (MAS) has delayed the implementation of its new cryptoasset prudential framework for banks, pushing it back from January 1, 2026, to January 1, 2027. 

The financial regulator’s decision followed feedback from the crypto sector during MAS’s consultation process, with stakeholders warning that the proposed risk classifications could hinder innovation, particularly for assets deemed higher risk, such as those built on open permissionless blockchains. 

Under the proposed rules, banks will need to hold capital reserves proportional to the risk of their cryptoasset exposure. Higher risk assets, like those on permissionless blockchains such as Bitcoin or Ethereum, would then have more stringent capital requirements, with a risk weight as high as 1250%. Meanwhile, reserve-backed tokens would have more leniency. The new standards are modeled on guidance from the Basel Committee on Banking Supervision.

Singapore established its digital asset framework in 2020 and maintains a stance of cautious innovation without risking instability. As crypto becomes more deeply embedded in the financial system, MAS says it intends to “continue to monitor developments … and global regulatory standards to ensure alignment and support responsible innovation.”

Cryptocurrency ownership is on the rise in Singapore, with 26% of residents owning digital assets. The country also has among the lowest crypto fraud rates in the APAC region.