Singapore plans to optimize cryptocurrency asset capital regulation: public chain assets may no longer be uniformly classified as high risk

Gold Finance reports that on April 21, according to Caixin, the Monetary Authority of Singapore has issued consultation documents proposing to establish a more friendly regulatory capital guideline for handling crypto assets on permissionless blockchains (also known as public chains) before implementing the Basel new rules on crypto asset capital requirements.
It is understood that the Basel crypto asset capital rules will categorize crypto assets into two groups: the first group involves tokenized traditional assets and stablecoins, which are subject to lower capital requirements; the second group involves crypto assets that do not meet the above conditions. The Monetary Authority of Singapore plans to abandon the practice of categorizing permissionless blockchain crypto assets as a blanket second group, allowing them to be classified as first group crypto assets with lower risk weights and more relaxed prudential requirements, provided they meet a series of principled criteria, thus achieving regulatory technology neutrality.
The specific regulation states:
For banks registered and established locally in Singapore, their exposure to permissionless blockchain crypto assets classified as the first group must not exceed 2% of the bank’s Tier 1 capital, and if related issuance forms liabilities at the bank level, the issuance scale must not exceed 5% of Tier 1 capital.