On May 15, ISDA and the Asia Securities Industry and Financial Markets Association submitted a joint response to the Monetary Authority of Singapore’s (MAS) consultation, published in April 2026, on the prudential treatment of crypto assets on permissionless blockchains, welcoming MAS’s more risk‑sensitive and technology‑neutral approach while urging further refinements.
Key messages from the response include:
- Support for technology neutrality: The response welcomes MAS’s clarification that crypto assets issued on permissionless blockchains are not automatically excluded from Group 1 treatment, provided risks are adequately mitigated. This is seen as an important step towards greater technology neutrality in the implementation of the Basel Committee’s crypto-asset standards in Singapore.
- Need for pragmatic, principles‑based implementation: While supporting the use of principles‑based requirements and deeming provisions, the response highlights that certain requirements, if interpreted literally, could be impractical for certain types of tokenized assets and stablecoins, particularly in relation to settlement finality, governance documentation and anti-money laundering and countering the financing of terrorism obligations for secondary market holders. Targeted clarifications and risk‑based application are recommended.
- Concerns over exposure and issuance caps: The response highlights strong concerns on the proposed exposure and issuance caps for Group 1 permissionless crypto assets as this results in highly disproportionate ‘dollar-for-dollar’ capital charges above the cap and contradicts the technology-neutral approach. Application of the cap also risks stifling innovation and pushing activity outside the regulated banking sector and/or beyond Singapore’s borders. Removal of these caps is recommended.
- Global alignment and timing: The response welcomes MAS’s decision to defer implementation to January 1, 2027 or later and encourages continued alignment with ongoing global reassessment of the Basel Committee’s crypto-asset standards, including potential recalibration towards greater technology neutrality.
Documents (1) for ISDA Responds to MAS on Prudential Treatment of Crypto Assets on Permissionless Blockchains
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