The Monetary Authority of Singapore (MAS), together with DBS Bank and JPMorgan, as well as the Marketnode cryptocurrency platform, launched Project Guardian to explore the potential of crypto technologies.
MAS Initiative directed to explore possible use cases for tokenized assets and decentralized finance. At the first stage of the project, they promise to test their work on wholesale financial markets, “so as not to damage financial stability.” The project will involve the largest bank in Singapore – DBS Bank, the American financial conglomerate JPMorgan Chase and the platform for issuing digital assets Marketnode.
“Practical experiments with tokens and DeFi will help expand our understanding of the rapidly changing digital asset ecosystem. Based on the results of Project Guardian, normative principles for decentralized finance can be formed that will help increase the benefits of the industry and at the same time reduce its risks,” said MAS Director of Financial Technology Sopnendu Mohanty (Sopnendu Mohanty).
The regulator also declares another goal of cooperation – to recommend Singapore as a center for the development of the latest technologies, so that the country becomes attractive for companies working with blockchain and cryptocurrencies, as well as to stop the “drain of talent” to other countries.
In March, cryptocurrency exchange Bybit moved its headquarters from Singapore to Dubai. A month later, Three Arrows Capital announced the same intentions.
MAS Managing Director Ravi Menon said that instead of banning crypto assets, the regulator will apply a regulatory framework to them. Previously, Menon was concerned that cryptocurrencies could be used by attackers for criminal activities, so he advocated the introduction of the most stringent rules for regulating the industry. Last year, Menon criticized cryptocurrencies for their high volatility and susceptibility to “speculative spikes.”
Source: Bits
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