The Monetary Authority of Singapore (MAS) has deferred new crypto prudential standards to start on January 1, 2027, citing industry feedback and the need for global alignment. The delay gives banks more time to adapt capital and risk frameworks under the Basel-aligned cryptoasset rules.
MAS delays crypto prudential standards to 2027
New rules align with Basel Committee guidance and change capital treatment for crypto exposures.
Higher-risk public, permissionless blockchain assets may require capital buffers up to 1,250%.
MAS crypto prudential standards delayed to 2027 — learn how Singapore banks will adjust capital, stablecoin rules, and risk classifications. Read for next steps.
What did the Monetary Authority of Singapore decide about crypto prudential standards?
The Monetary Authority of Singapore (MAS) has deferred the implementation of new crypto prudential standards to January 1, 2027. The regulator cited industry feedback from its consultation and the need for global alignment with Basel Committee standards, allowing banks more time to recalibrate capital, liquidity and large exposure rules for cryptoassets.
How will Basel-aligned cryptoasset standards change bank capital rules?
The Basel-aligned framework requires banks to hold capital reserves based on cryptoasset risk classifications. Higher-risk assets, particularly those on public permissionless blockchains, will face significantly higher capital requirements. Lower-risk, reserve-backed stablecoins may receive more favorable treatment if they meet updated eligible reserve asset criteria.
When do the new rules now take effect and why was the delay granted?
MAS moved the start date from January 1, 2026 to January 1, 2027. The regulator said industry participants raised timing and classification concerns during the consultation. MAS aims to monitor evolving global standards and support responsible innovation while keeping Singapore aligned with international prudential norms.
How will banks and the market respond to the delay?
Banks can use the extra year to refine risk models, adjust capital planning, and complete pilot projects on tokenisation and stablecoin integration. Local lenders already experimenting with tokenised bonds and structured notes will likely recalibrate timelines for broader product launches.
Why do risk classifications matter for crypto on bank balance sheets?
Risk classifications determine capital charges and influence whether assets are feasible to hold on bank balance sheets. Assets judged extremely volatile could require capital buffers up to 1,250%, while reserve-backed stablecoins that meet eligibility tests may attract less onerous treatment.
Frequently Asked Questions
How will the delay affect bank capital planning?
The 12-month delay gives banks time to update capital models, run stress tests and incorporate higher capital buffers into financial planning. Institutions should re-evaluate product launches and lending strategies linked to crypto exposures.
What does global alignment mean for Singapore’s rules?
Global alignment means MAS is calibrating rules to match Basel Committee standards and other major jurisdictions, reducing fragmentation and aiming to limit competitive disadvantages for local banks.
Key Takeaways
- Delay confirmed: MAS moved the start date to January 1, 2027 to incorporate industry feedback.
- Basel alignment: New rules follow Basel Committee guidance, changing capital treatment for cryptoassets.
- Prepare now: Banks should update risk classifications, capital plans and product timelines during the extended transition.
Conclusion
The MAS decision to delay crypto prudential standards to 2027 reflects a measured approach to balancing innovation and financial stability. Financial institutions should use the additional year to align capital, liquidity and exposure frameworks with the Basel-aligned rules. COINOTAG will monitor updates and provide ongoing coverage as MAS finalises the technical standards.
Author: COINOTAG | Published: 2025-10-10 | Updated: 2025-10-10