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