Singapore Delays Crypto banking Regulations to 2027
Singapore’s central bank has decided to delay the implementation of new crypto asset capital rules untill 2027. This move gives banks more time to adapt to the changes.
Initially, the rules were set to take effect in January 2026. However, after receiving feedback from 13 financial and web3 industry parties, the Monetary Authority of Singapore (MAS) decided to postpone the date. The feedback highlighted concerns about the new crypto laws, including the possibility of “regulatory arbitrage.” This term refers to companies exploiting regulatory changes to minimize costs or avoid unfavorable rules.
While Singapore is taking its time, othre regions are moving forward. Hong Kong plans to implement similar capital requirements for crypto assets in January 2026. The European Union has already enforced its Capital Requirements Regulation III (CRR3) since January 2025.
The Basel Committee’s framework, introduced in mid-2022, aims to ensure financial stability as banks get involved with crypto assets. It divides crypto assets into two groups: Group 1 includes tokenized customary assets with stable values, while Group 2 consists of purely crypto assets like Bitcoin and Ethereum.Each group has different risk weights, with Group 2b assets having a higher 1,250% risk weight.
These rules address minimum capital requirements for various risks and aim to align with international standards. Singapore’s delay reflects a cautious approach to integrating crypto assets into the banking system.
