The Monetary Authority of Singapore (MAS) has set up a special group under Project Guardian, including regulators from Switzerland, Japan, and the United Kingdom. The group’s main objective is to facilitate the development of common standards and regulatory frameworks for the digital asset ecosystem.
The MAS, the primary regulator of the crypto market in Singapore, has announced the formation of a task force that will monitor several future pilots under Project Guardian.
Apart from the MAS, this group includes:
- The Financial Services Agency of Japan (FSA);
- The United Kingdom’s Financial Conduct Authority (FCA);
- The Swiss Financial Market Supervisory Authority (FINMA) as an observer.
Here are the group’s main tasks:
- discussing the legal, policy, and accounting regimes for digital assets;
- identifying potential risks and possible gaps in current legislation relating to tokenized assets;
- developing common standards for the design of digital asset networks across jurisdictions;
- supporting high standards for the interoperability of digital assets in cross-border transfers;
- conducting pilot tests of various digital assets through regulatory sandboxes;
- sharing knowledge between regulators and industry.
According to Leong Sing Chiong, Deputy Managing Director of MAS, the initiative is primarily intended to facilitate the development of common standards and regulatory frameworks. This will provide a solid foundation for the interoperability of emerging digital asset solutions for cross-border transactions. The official believes that through the partnership, Singapore will be able to ensure the stable growth of the digital asset ecosystem both in the country and on a more global scale.
Project Guardian was launched by the MAS in 2022. The project has already conducted a number of trials with tokenized assets through DeFi platforms and open networks. It’s also worth noting that the MAS is working closely with the FSA on the initiative. The regulators have jointly tested the tokenization of Japanese government bonds and the Japanese yen (JPY) and have also partnered to explore other digital asset opportunities.
