MAS Partners Policymakers in Japan, Switzerland and the UK to Foster Responsible Digital Asset Innovation

The Monetary Authority of Singapore (MAS) has announced a strategic collaboration with key regulatory authorities in Japan, Switzerland, and the United Kingdom to „advance digital asset pilots in fixed income, foreign exchange and asset management products“ in an effort to further promote responsible digital asset innovation. This partnership involves MAS, the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA).
Under MAS’s Project Guardian, a joint initiative with 15 financial institutions from across the globe, various industry pilots were conducted centered around asset tokenization within fixed income, foreign exchange, and asset management products. These pilots have demonstrated substantial potential for enhancing market efficiency and transaction processes through tokenization. As these pilot projects continue to expand in scope and complexity, there is a growing need for closer collaboration between policymakers and regulatory bodies. Consequently, MAS has established the Project Guardian policymaker group, comprising the FSA, FCA, FINMA, and MAS itself.
The primary objectives of this policymaker group are as follows:
– To advance discussions regarding the legal, policy, and accounting treatment of digital assets.
– To identify potential risks and gaps in current policies and legislation relevant to tokenized solutions.
– To explore the establishment of universal standards for the design of digital asset networks and best practices in various jurisdictions.
– To promote high standards of interoperability to facilitate cross-border digital asset development.
– To facilitate industry pilot programs for digital assets through regulatory sandboxes, where applicable.
– To encourage the exchange of knowledge and insights between regulatory bodies and industry stakeholders.
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The list of asset management firms and banks participating in Project Guardian may be found here.