Singapore's central bank has postponed the implementation of Basel-style Capital rules for banks with exposure to cryptocurrencies by at least a year, citing the need for global coordination.
The Monetary Authority of Singapore confirmed the move in an official response published on 9 October 2023, moving the implementation date from 1 January 2026 to 1 January 2027 or later.
Regulatory delays and their impacts
The decision comes after receiving feedback from the industry warning that early adoption could cause regulatory divergence if Singapore moves ahead of other jurisdictions.
“MAS will postpone the implementation of the regulations and disclosure on exposure to Cryptoasset to 1 January 2027 or later and will provide updates on the final Cryptoasset standard and implementation date in due course,” the regulator said .
The framework aligns domestic supervision with the Basel Committee on Banking Supervision's 2022 global Cryptoasset standard, which requires Capital buffers of up to 1,250% for highly volatile digital assets. MAS said it will provide further updates as international timelines converge.
The delay gives banks more time to adjust their risk-weighting models and pricing systems. MAS also stressed the need for “greater international consistency” in how stablecoins and permissionless blockchains are classified.
This cautious stance contrasts with Hong Kong, where the HKMA has proposed lighter Capital rules to attract institutional Capital , a striking difference that shows how Asia's top financial centres are experimenting with different strategies.
Industry feedback and market context
Respondents, including Circle, Coinbase, Paxos, Fireblocks and OCBC, warned that classifying most public chain assets as “Tier 2” high-risk exposures could stifle innovation.
MAS said it will XEM advances such as layer-2 payment protections and pursue harmonization of eligible reserve assets related to stablecoins. Banks must continue to consult with MAS on “appropriate prudential treatment” of cryptocurrency holdings until at least 2026.
The postponement coincides with increased scrutiny of foreign exchanges. According to Elliptic, MAS has asked platforms that operate solely overseas to cease operations without a license or approval by June 30. The Financial Times reports that Bitget and Bybit have moved staff to Hong Kong and Dubai.
However, institutional adoption continues to grow strongly in the Asia-Pacific region . A BeInCrypto interview with Laser Digital CEO Jez Mohideen shows that Web3 activity is expanding beyond Singapore and Hong Kong to Japan, South Korea, and Southeast Asia, reflecting a maturing regional market.
The Most “Crypto-Obsessed” Countries Source: Apex ProtocolDespite increased scrutiny, cryptocurrency adoption in Singapore remains resilient . One analysis ranked the city-state as the top global investor, with 24.4% of the population owning digital assets. Another report found that Asian family offices allocate 3–5% of their portfolios to cryptocurrencies. This highlights growing institutional interest even as regulators proceed cautiously.
The delay cements Singapore’s reputation as a disciplined fintech hub—one that values stability over speed even as it leads the world in retail and institutional investor adoption of digital assets. Temporary rules under MAS Notice 637 remain in effect, defining additional Tier 1 and Tier 2 Capital instruments.
