Singapore Tightens Crypto Oversight for Banks Ahead of Basel Rules

Singapore is tightening its oversight of banks that have cryptocurrency exposure ahead of stricter global banking standards. The Monetary Authority of Singapore (MAS) has instructed locally incorporated banks to disclose their crypto holdings and engage with the regulator on risk treatment before new prudential rules take effect.

The MAS plans to limit exposure to cryptoassets on permissionless blockchains to 2% of Tier 1 capital during the transition period. This means that banks must evaluate their digital asset positions more closely and improve internal monitoring.

Banks in Singapore have also been urged to identify vulnerable cryptoassets and prioritize migration toward quantum-resistant security solutions. This approach reflects growing concerns that future computing technologies could weaken existing cryptographic protections.