MAS Directs Banks to Disclose Crypto Exposure Amid International Alignment Efforts

The Monetary Authority of Singapore (MAS) has directed banks to report their exposure to cryptoassets and engage in prudential treatment. This move is part of a broader effort to align with international standards, specifically the Basel Committee on Banking Supervision's framework for cryptoasset exposures.

Banks holding any cryptoasset exposure must notify MAS and cap their exposure at 2% of Tier 1 capital during this transitional period. The full Basel-aligned framework has been deferred to January 1, 2027, or potentially later.

The MAS has also launched an AI-driven Cyber and Technology Risk Taskforce (ACT) to strengthen the financial sector's defenses against AI-powered attacks and quantum computing risks. Senior officials from DBS, OCBC, and UOB are part of this initiative.