The Monetary Authority of Singapore has instructed banks to disclose their cryptoasset exposure and consult on risk management steps ahead of a delayed global regulatory framework.
Local banks must now report any holdings related to cryptoassets on permissionless blockchains and keep exposure under 2% of their core capital. This interim restriction applies while MAS prepares for full Basel Committee-aligned rules, which have been postponed to January 2027 or possibly later. Tier 1 capital, the benchmark for this limit, is the highest-quality capital that indicates a bank’s financial strength.
Alongside tighter crypto oversight, Singapore’s regulator and the Association of Banks in Singapore unveiled the AI-driven Cyber and Technology Risk Taskforce (ACT) on July 28, 2026. This initiative brings together top executives from DBS, OCBC, and UOB the country's three biggest lenders to bolster defenses against AI-enabled cyberattacks and potential quantum computing threats to encryption.
For banks active in crypto markets, these changes mean building new reporting tools and preparing for stricter controls. The uncertainty caused by the deferral of Basel-aligned rules forces institutions to stay flexible as they design compliance systems that meet evolving MAS standards.
MAS’s proactive approach mirrors global efforts but also signals a localized push to avoid risks growing unchecked. As of now, Singapore’s banks face both immediate reporting duties and involvement in securing the financial ecosystem from emerging tech risks.
This material is for informational purposes and does not constitute financial advice.
