The Monetary Authority of Singapore has successfully designed a valid framework, making it easier for digital asset networks to operate in the region. It will basically help in designing a network of digital assets that are open and interoperable.
Titled Enabling Open & Interoperable Networks, the report has been jointly drafted by the experts at the Bank of International Settlements. The experts hail from a similar subject matter and are a part of the bank’s Committee on Payment & Market Infrastructure, also known as CPMI. Other financial institutions participated as well to draft the framework for digital asset networks.
The title is part of the efforts of MAS to ensure that the network is underpinned by international standards. They are bound to protect the users by boosting efficiency in the financial market and the safety of their usage. It considers how CPMI and IOSCO principles, which are currently relevant to the financial market infrastructures, can be applied to the model that is evolving in recent times. This pertains to asset tokenization and decentralized finance.
The Singapore-based authority has announced the establishment of the Project Guardian Industry Group. It aims to expand Project Guardian and measure the potential of asset tokenization across the financial market. The Group consists of eleven financial institutions tasked to lead the segment of wealth management, asset management, foreign exchange, and fixed income.
Project Guardian has just welcomed the Japan Financial Services Agency – JFSA. This marks the entry of the first overseas financial regulator, making way for both to collectively explore digital asset innovation. Additionally, they will explore what are the best practices that one can follow for asset tokenization.
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Since it poses a great risk to financial integrity and stability, an attempt will be made to safeguard users from those risks and keep them safe no matter what.
Leong Sing Chiong, the Deputy Managing Director in MAS for Markets & Developments, has called this development a new phase for Project Guardian, adding that they are now looking forward to collaborating with practitioners and policymakers to develop a framework that is effective and sound to guide the ecosystem to develop.
Leong highlighted that MAS discourages speculation in cryptocurrencies, but it sees the potential for value creation and gains in the ecosystem of digital assets. Therefore, stating further, they are actively collaborating with the industry for a brighter future.
Mamoru Yanase from FSA said that they are also looking forward to working with MAS and other participants, including FinTech platforms & traditional financial institutions. They will jointly enhance their knowledge in the said area.
The Deputy Director-General of the Strategy Development & Management Bureau has clarified that they have joined the project as an observer at a time when the DeFi ecosystem continues to thrive with all its complexities.
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The development is followed by MAS welcoming the publication of ISSB standards. These are crucial for offering disclosures of climate-related information that is consistent and reliable.
