MAS consults on a prudential framework for banks’ exposure to cryptoassets on permissionless blockchains, aiming to balance innovation with financial stability through appropriate capital and risk controls

The consultation considers whether cryptoassets on public, permissionless blockchains—previously treated as inherently high risk—could qualify for more favourable regulatory classification if they meet specific conditions on governance, transparency and risk management. MAS aims to align its framework with Basel cryptoasset standards, balancing financial-stability concerns with support for innovation, while ensuring banks hold capital commensurate with the risks posed by different types of crypto exposures…