The Monetary Authority of Singapore (MAS) announced that it will postpone the implementation of new capital requirements for banks’ crypto-asset exposures, aligning them with global Basel Committee standards.
The rules, initially planned to take effect on January 1, 2026, will now begin no earlier than January 1, 2027, according to MAS’s consultation summary released on October 9, 2025.
The new framework, based on the Basel Committee on Banking Supervision’s “Prudential Treatment of Cryptoasset Exposures,” requires banks to hold additional capital against holdings of digital assets such as Bitcoin and other volatile tokens.
MAS said the delay follows industry feedback expressing concern that early implementation could disadvantage Singapore’s financial institutions compared to peers in jurisdictions that are still finalizing similar standards.
Thirteen consultation respondents, including several global banks and crypto-focused firms, urged regulators to allow more time for operational readiness.
MAS cited the need to minimize “regulatory arbitrage,” where institutions might shift business to less stringent markets, as a key consideration behind the revised timeline.
The regulator emphasized that the postponement does not represent a change in stance toward crypto assets but a pragmatic approach to ensure the framework is effective once introduced.
Banks will use the additional time to strengthen internal controls, valuation processes, and risk models for managing crypto exposures.
The decision aligns Singapore with other major financial hubs taking cautious approaches to Basel crypto rules. Hong Kong and the U.K. are also staging their rollouts over extended timelines, while the European Union’s CRR3 framework is still in progress.
MAS said it will issue further guidance ahead of the new implementation date, reaffirming its commitment to balancing innovation in digital assets with financial stability and sound risk governance.