- •Singapore’s MAS delayed Basel crypto capital rules to 2027 or later for local banks.
- •Circle and Coinbase warned that early adoption could trigger regulatory arbitrage risks.
- •MAS will work with banks to refine reporting and risk controls before the full Basel rule rollout.
Singapore’s central bank has pushed the rollout of new Basel-based capital rules for digital asset exposure, changing its timeline by at least a year. The Monetary Authority of Singapore (MAS) confirmed the change through a consultation summary release. The standards were initially scheduled to take effect on January 1, 2026, but the regulator now plans to begin enforcement on January 1, 2027, or later, after feedback from industry participants.
Consultation Feedback Influenced the Change
According to the consultation document, MAS received responses from 13 parties, including Circle and Coinbase. People who answered the consultation said starting the new Basel crypto rules too early could cause problems. They said that if Singapore uses the rules before other places, companies might move to countries with easier rules. They also said banks need more time to change their systems to follow the Basel rules.
The Basel Committee made the “Prudential Treatment of Cryptoasset Exposures” in late 2022. The rules say banks must keep enough money to cover their crypto, just like they do with other assets.
MAS added these rules to its SCO60 framework and first planned to start them in 2026. But MAS said the rules need strong systems to work well. The feedback showed that banks still need better tools to check risk, value crypto, and handle data.
Regional Developments Influence MAS Strategy
While MAS is slowing down, other places in Asia are moving forward with their own rules. Hong Kong has already started using similar standards for banks that work with crypto. The difference in timelines does not reflect policy reluctance in Singapore. Instead, it shows MAS giving domestic banks space to expand their risk infrastructure before binding rules apply.
Singapore tries to support new ideas while also keeping its financial system safe. The delay lets banks that already use crypto, or plan to, keep talking with the regulator. They are expected to work directly with MAS on how to handle these rules during the change.
MAS is also watching what other countries are doing and wants to stay in line with global standards. The regulator has stated that the one-year extension, or longer if required, does not change its commitment to implementing the Basel standards in full.
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Preparation Work Continues Before Rollout
Until formal implementation begins, MAS will work with affected institutions to refine reporting standards and risk controls. The regulator noted that banks must maintain dialogue regarding capital treatment and remain transparent about exposure levels. That includes updating valuation models and enhancing data reporting processes tied to emerging digital asset products.
The consultation summary also indicated that MAS could publish additional guidance ahead of the 2027 introduction date. Financial institutions are expected to prepare for final rules without assuming further timeline concessions.
The SCO60 framework, aligned with Basel’s “Prudential Treatment of Cryptoasset Exposures” standard, sets out how banks classify and back digital asset positions. It introduces stricter capital requirements for highly volatile tokens and differentiated treatment for tokenized traditional assets. Firms that responded to the MAS consultation said that unclear international timelines created compliance differences, specifically for multinational firms.
MAS stated that delaying the start date helps financial institutions apply the rules consistently across markets. It also reduces the risk of banks reorganizing exposure to jurisdictions with lighter treatment.
Meanwhile, the new January 2027 start date gives Singapore’s banks more room to align with the Basel Committee’s requirements without rushing structural changes. Feedback from Circle, Coinbase, and other respondents shaped the decision and noted the risk of uneven adoption across markets. MAS will keep working with firms during the transition while preparing updated guidance ahead of implementation.