The Monetary Authority of Singapore (MAS) published Consultation Paper P009-2026 on 17 April 2026, proposing a framework for the prudential treatment of cryptoassets held on permissionless blockchains. The consultation is open until 18 May 2026 at 11:59 PM. The paper addresses the classification of permissionless-blockchain cryptoassets for capital adequacy, credit risk, and liquidity risk purposes under Singapore's banking and financial institution regulations.
MAS proposes to allow banks to classify and treat a permissionless cryptoasset as a Group 1 cryptoasset, the more favourable risk category, if the permissionless cryptoasset satisfies a set of principle-based requirements designed to adequately mitigate the risks arising from the characteristics of permissionless blockchains. The baseline framework derives from the Basel Committee on Banking Supervision's prudential standard for cryptoasset exposures, adopted into Singapore law through MAS's capital adequacy and risk-based capital requirements for banks and merchant banks.
Banks and financial institutions currently authorised or supervised by MAS that hold or plan to hold cryptoassets on permissionless blockchains must assess whether the proposed principles are satisfied for each relevant asset. Institutions that cannot demonstrate satisfaction of those principles would be subject to the more onerous Group 2 treatment, which carries significantly higher risk weights under MAS's capital framework. Custodians, fund managers, and other licensed entities operating under MAS supervision that facilitate access to permissionless cryptoassets may also face consequential adjustments to their regulatory capital, counterparty risk, and liquidity management frameworks.
Stakeholders wishing to respond must submit written comments by 18 May 2026 to MAS at the address specified in the consultation paper. MAS has noted that responses may be published on its website unless confidentiality is requested. The proposal represents MAS's move to harmonise Singapore's prudential treatment of permissionless-blockchain assets with the Basel cryptoasset framework while introducing a principle-based pathway to the more favourable Group 1 classification for qualifying assets.
Our firm advises banks, digital asset businesses, and licensed financial institutions on MAS regulatory compliance, cryptoasset capital adequacy, consultation responses, and Singapore financial licensing. We have a dedicated partner network covering Singapore digital asset regulation. Contact us to discuss the implications of P009-2026: work we undertake includes MAS regulatory submissions, cryptoasset risk classification, capital framework analysis, digital payment token licensing, and DPT compliance structuring.
Source: Monetary Authority of Singapore, Consultation Paper on the Prudential Treatment of Cryptoassets on Permissionless Blockchains, Consultation Number P009-2026, published 17 April 2026, https://www.mas.gov.sg/publications/consultations/2026/consultation-on-the-prudential-treatment-of-cryptoassets-on-permissionless-blockchains (confirmed 3 May 2026).
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