The Monetary Authority of Singapore (MAS) has launched a new consultation on prudential rules for banks and cryptoassets, particularly around the use of permissionless blockchains for tokenized assets and stablecoins. The latest iteration provides lighter touch alternatives to crypto rules proposed by the Basel Committee on Banking Supervision (BCBS) in order to provide a pathway for banks to use permissionless blockchains. While the rules may be updated, banks can immediately adopt them. The consultation closes on 18 May 2026.
The Basel rules provided a light touch treatment for tokenized assets on permissioned distributed ledgers, but anything on permissionless blockchains receives a similar treatment to cryptocurrencies and the associated 1250% risk weighting. In its latest consultation MAS acknowledged that this approach “was not technology neutral and punitive, in view of advances in implementation practices”.
When MAS launched its previous round of consultations in March 2025 its proposals were very close to the Basel rules. In October 2025 MAS postponed implementation pending an expected Basel review regarding permissionless blockchains. By November the Basel Committee acknowledged it was planning an expedited review of the rules. The fact that MAS is now pressing ahead with its own proposals may indicate that the Basel revision is not moving fast enough.
Two requirements in the Basel and MAS rules effectively ruled out permissionless chains, for which MAS now provides principle-based alternatives. One of the waived requirements stated that the network of a cryptoasset must not pose material risks that could impact the transferability, settlement finality or redeemability of the asset. It also required that all key network elements are well defined so that transactions and participants are traceable. The second waived requirement is that all network node validators are either regulated, supervised, or subject to appropriate risk management standards. Validators must also publicly disclose a comprehensive risk governance framework.
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