Shaping the Rules: MAS Consultation on the Prudential Treatment of Cryptoassets

Shaping the Rules: MAS Consultation on the Prudential Treatment of Cryptoassets
Event Overview
The Monetary Authority of Singapore is seeking industry feedback on how financial institutions should treat cryptoassets on permissionless blockchains from a prudential and capital perspective. This consultation marks a shift from a previously conservative stance towards a more risk-sensitive framework that may allow institutional participation under defined conditions. At its core, MAS is addressing a key challenge: how banks can safely gain exposure to or issue cryptoassets on permissionless infrastructure without introducing unacceptable risks in governance, technology resilience, settlement finality, and AML/CFT compliance

What MAS Is Proposing
Principle-Based Classification
Allow permissionless cryptoassets to qualify for favourable (Group 1) treatment if they meet risk mitigation requirements
Institutional-Grade Safeguards
Require strong governance, operational resilience, settlement finality, and AML/CFT controls
Exposure & Issuance Caps
Limit how much banks can hold or issue, even if assets qualify for better treatment
Supervisory Oversight Framework
Require notification, internal validation, and allow MAS to override classifications

What This Forum Will Focus On
Whether Group 1 eligibility is realistically achievable in practice
Gaps between regulatory expectations and operational realities
Impact of exposure caps on institutional use cases
Practical challenges across custody, compliance, and infrastructure
Balancing financial stability with innovation and competitiveness

Objective of the Session
Gather structured, institution-grade feedback from DAA members
Identify key friction points and unintended consequences
Consolidate industry views into a formal submission to MAS

Key Questions MAS Is Asking
Should the principle-based approach replace rigid classification rules?
Are the proposed safeguards sufficient, excessive, or impractical?
How should AML/CFT risks be realistically managed on permissionless systems?
Should exposure caps remain long-term, and how should they be calibrated?

Who Should Attend
This session is for professionals operating in the digital assets ecosystem, including:
Financial institutions
Asset managers and trading firms
Digital asset service providers
Legal, compliance, and risk professionals
Infrastructure and custody providers

Programme Details
2:00PM - Registration
2:30PM - Opening Address by DAA Co-Chairman
2:40PM - Regulatory Forum
4:00PM - Networking and Refreshments
4:50PM - End of Programme