Singapore Banks Ordered to Disclose Crypto Holdings Amid Tightening Regulation

Singapore's Monetary Authority (MAS) has issued new guidelines for banks with cryptocurrency exposure. The regulator wants locally incorporated banks to disclose and inventory their crypto holdings, improve reporting systems, and engage with the MAS on risk treatment. These measures are in preparation for stricter global banking standards set by the Basel Committee.

The MAS has postponed the implementation of a Basel-aligned prudential framework until January 1, 2027, or later. However, the regulator is urging banks to take immediate action and strengthen their reporting systems and risk management practices without waiting for the final rules.

Banks are also required to prioritize migrating 'vulnerable' crypto assets to quantum-resistant solutions. This tightening of regulation raises compliance costs and could limit institutional cryptocurrency adoption, custody, and bank-linked DeFi/CEX activity in Singapore.