Singapore tightens crypto rules for banks

• Singapore will require banks to strengthen oversight of crypto exposures before new Basel standards take effect.
• The new rules aim to improve risk management and capital reporting for digital assets.
• Banks must prepare for stricter reporting and compliance as crypto becomes more widely used.

The Monetary Authority of Singapore (MAS) is tightening oversight of banks' cryptoasset exposures ahead of new Basel banking rules.

The changes will require banks to improve how they manage risk, measure crypto exposures and report digital asset holdings.

Banks will need to meet the updated standards before the Basel Committee's crypto framework is fully implemented.

The rules are designed to ensure banks hold enough capital against crypto-related risks while keeping the financial system stable.

MAS said the changes also support clearer supervision as banks expand services linked to digital assets and tokenised finance.

The Basel framework sets global standards for how banks should treat cryptoasset exposures under prudential rules.

Singapore has continued to tighten digital asset regulation while supporting responsible blockchain and tokenisation projects.