MAS publishes consultation paper on prudential treatment of cryptoasset exposures and requirements for Additional Tier 1 and Tier 2 capital instruments for banks
29 April 2025
On 27 March 2025, the Monetary Authority of Singapore (“MAS”) issued its Consultation Paper on the Prudential Treatment of Cryptoasset Exposures and Requirements for Additional Tier 1 and Tier 2 Capital Instruments for Banks (“Consultation Paper”).
The Consultation Paper seeks feedback on MAS’ proposed amendments to the standards relating to:
- the regulatory framework for capital and large exposures for Singapore-incorporated banks; and
- the regulatory framework for liquidity for banks in Singapore.
The proposed amendments are aimed at implementing the standards relating to the prudential treatment and disclosure of cryptoasset exposures, published by the Basel Committee on Banking Supervision (BCBS) in December 2022 and July 2024, respectively, and subsequently updated in July 2024 and November 2024. MAS proposes amendments to address the prudential treatment and disclosure of cryptoasset exposures to the following notices:
- Notice 637 on risk based capital adequacy requirements for banks incorporated in Singapore (“Notice 637”);
- Notice 649 on minimum liquid assets and liquidity coverage ratio;
- Notice 651 on liquidity coverage ratio disclosure;
- Notice 652 on net stable funding ratio;
- Notice 653 on net stable funding ratio disclosure; and
- Notice 656 on exposures to single counterparty groups for banks incorporated in Singapore.
In addition, MAS proposes amendments to Notice 637 to revise the minimum requirements for Additional Tier 1 and Tier 2 Capital relating to the type of investors they are issued to.
MAS also proposes amendments to Notice 637 to enhance the clarity of requirements on the computation of the capital conservation buffer and countercyclical buffer and the recognition of credit risk mitigation under synthetic securitisations.
The proposed amendments are intended to take effect from 1 January 2026.
The consultation closed on 28 April 2025.
Reference materials
The Consultation Paper is available on the MAS website www.mas.gov.sg.