On 17 April 2026, the Monetary Authority of Singapore (MAS) issued a consultation paper (April 2026 Consultation Paper) seeking feedback on a more risk-sensitive prudential treatment for cryptoassets issued on permissionless blockchains (i.e., permissionless cryptoassets). The April 2026 Consultation Paper follows from feedback received on MAS’ consultation paper issued on 27 March 2025 on the prudential treatment of cryptoasset exposures and requirements for additional Tier 1 and Tier 2 capital instruments for banks.

Having considered this feedback, MAS now proposes to allow banks to classify and treat permissionless cryptoassets as Group 1 cryptoassets, subject to principle-based requirements designed to adequately mitigate the relevant risks.

This update outlines the background of the classification of permissionless cryptoassets, the principle-based requirements for designating such cryptoassets as Group 1 cryptoassets, the proposed implementation timelines as well as the exposure and issuance caps that apply to such cryptoassets.

If you would like information and/or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or any of the following Partners:

Elaine CHAN
Co-Head – Financial Services Regulatory
d +65 6416 8010
e elaine.chan@wongpartnership.com
Click here to view Elaine’s CV.

TIAN Sion Yoong
Partner – Financial Services Regulatory
d +65 6416 2488
e sionyoong.tian@wongpartnership.com
Click here to view Sion Yoong’s CV.