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It will join forces with financial industry players to explore how MAS’ asset tokenization and DeFi sector can benefit Singapore.
The Monetary Authority of Singapore has partnered with the financial industry to promote Project Guardian. The startup plans to explore asset tokenization and DeFi. It’s a good step for the country to become a cryptocurrency hub.
Singapore to Strengthen its Crypto Presence
The first phase of the project will investigate DEFI applications. This work will be led by Singapore’s largest bank DBS Bank, JPMorgan Chase and Marketnode.
“Project Guardian” will also aim to ensure that DeFi does not harm the country’s financial stability.
Sopnendu Mohanty, President of MAS Fintech, said:
“Through practical experimentation with the financial industry and the broader ecosystem, we seek to sharpen our understanding in this rapidly transforming digital assets ecosystem. The learnings from “Project Guardian” will serve to inform policy markets on the regulatory guardrails that are needed to harness the benefits of DeFi, while mitigating its risks.”
Another important goal of the collaboration is to stop the drainage of crypto talent and blockchain businesses to other destinations. Digital asset platform Bybit has moved its global headquarters from Singapore to Dubai.
Like Dubai, which has recently opened its arms to the blockchain industry, Singapore is keen to establish itself as a cryptocurrency hub and develop its local digital asset ecosystem.
Singapore has a tech-savvy population. Just as much interest in the cryptocurrency market.
Strict Rules Could Be Beneficial
According to independent Reserve research, it is estimated that 43% of local people enter the ecosystem. The fact that 93% of the participants know about Bitcoin shows their interest in crypto.
Ravi Menon, head of MAS, assured that the regulator has no plans to ban the asset class, but will instead apply a comprehensive regulatory framework to it.
Menon expressed concern that wrongdoers could use crypto in their criminal activities. Therefore, the rules imposed on it should be as “strict” as possible. According to him, the legislation will not only restrict illegal actions but also transform Singapore into a global center of digital assets.