Collaborative projects and regulatory developments in Singapore show an appetite for innovation in digital assets In early 2022, the financial authorities in Singapore took a cautious approach to technology, potential and development, but there was a lot of optimism for the future of blockchain internationally. Ravi Menon, the general manager 2019 of the Singapore Monetary Authority , described blockchain as a technology that allows consensus through a distributed notebook and allows various assets to work together and process. without reliable intermediaries. From healthcare to logistics and fintech, innovators in various sectors have already found numerous applications for blockchain technology. It is the foundation of blockchain, crypto currency and non-centralized finance . A year later, the crypto and DeFi industry entered a crypto winter after a successive collapse of three Arrows Capital , a protection fund focused on Terra stablecoin and crypto assets. In may 2022, when Luna fell, it was estimated that 60 billion US dollars were destroyed. Investing US$200 million in Luna tokens, 3AC failed to pay back lenders because crypto currency prices generally fell. The next fallout has put a lot of big industry players in a tough spot. FTX, an important crypto money exchange, filed for bankruptcy in November 2022, amid allegations of activity and poor management of funds, and the crypto currency once again faced scandal. In response later this month, Singapore's state holding company Temasek Holdings deleted its investment in the stock market for $275 million, but "transforming sectors of block chain applications and non-centralized technologies and a world that is connected again." MAS projects Despite these developments, Singapore continues to see potential in blockchain. Shortly after FTX's collapse at the Bloomberg New Economy Forum, Lawrence Wong, who is both deputy prime minister and finance minister in Singapore, reiterated the government's long-standing stance: "Singapore is open to digital asset innovation, but not open. no crypto speculation”. Commenting on market developments at the Singapore fintech Festival 2022 last year in November, Menon observed that "a hard winter in the field of crypto assets" started and "there is a delayed cleaning of unsustainable business models, which is very risky". applications and inappropriate use cases. The digital presence industry will become more lean and stronger.” Instead, blockchain's potential is outside crypto and DeFi. At the same fintech festival, Menon announced the five desired results of MAS's fintech cooperation in Singapore. First, he's developing a model for immediate cross-border transfer. MAS worked with the International Bank of payments Innovation Center on Project Nexus, a multilateral solution linking countries' real-time payment systems. It creates a unified solution that connects real-time payment systems from different countries, providing immediate cross-border payments. Singapore is working on an "atomic settlement" through the Ubin Plus Project to develop an emergency cross-border settlement by simultaneously trading two linked assets in real time. In the meantime, Project Orchid focused on programmable money and on making money easier and organized with established rules. The Project Guardian focuses on tokinned assets and how software programs will be facilitated and organized to represent ownership of rights on any valuable asset as a digital token or entity. Finally, Project Greenprint looked at reliable sustainability data. It discussed how to build a reliable data ecosystem through the use of distributed notebook technology that provides access and validation to climate and sustainability data. Menon stressed the importance of co-operation in these projects: Public and private, on-duty and developing, and between Singapore and other countries. This collaboration can be seen in various initiatives and partnerships, including Temasek and MAS. Previously, Singapore's Project Ubin's success, a joint project aimed at demonstrating the practice of blockchain and distributed notebook technology for cross-border payments and payments, has uncovered several projects, including Partior, Project Dunbar and Project Ubin Plus. MAS has demonstrated that the central banks, in collaboration with the various central banks and BIS within the Dunbar Project, can handle directly on a shared platform using digital currencies. The Partior is a block chain-based barter and reconciliation network, jointly established by DBS Bank, JP Morgan and Temasek, aimed at ensuring that cross-border payments are made in real time in different currencies. Standard Chartered recently joined as fourth partner and led a Series a financing tour with the participation of existing partners. The party is currently offering two consensus currencies and is aiming to increase their bids to eight. "The Project Guardian is a collaborative venture with the financial sector, which aims to explore the feasibility of real-world asset toxicity and practices in DeFi, while managing risks for financial stability and integrity". Within this project, MAS started working with industry partners to "explore the economic potential of asset toxicity and value added usages". Recently, MAS has joined JP Morgan and Japan's SBI Digital Asset Holdings to trade in toked versions of Singapore state bonds, Japan state bonds, Japanese yen and Singapore dollars. The test was carried out using Polygon and Aave protocols. Regulatory notice In the midst of all this collaborative activity, Singapore maintained a cautious approach to crypto currency and sought to promote innovation in the block chain area while observing the four risk areas of the "crypto ecosystem": Money laundering and terrorist financing risks, technology and cyberrisks, consumer protection and financial stability. This year, MAS continued its efforts to regulate this developing sector. Last year in April, the Bill of Law on Financial Services and Markets was adopted in the Singapore Parliament. The FSM Act aims to strengthen and strengthen MAS's regulatory powers in the financial sector. These powers will address key risk areas such as money laundering and terrorism, the organization of digital token service providers. In particular, the FSM will expand MAS's ability to issue prohibition orders and regulate virtual asset service providers. MAS first published two consultation documents, which proposed measures to regulate crypto money trade and consumer damage risk, as well as to improve standards and promote the development of stablecoins. These measures will constitute part of the Payment Services Act 2019. To protect retail merchants Because crypto currencies are an important part of the digital asset ecosystem, MAS does not approve of prohibiting them. The recommended measures to reduce the damage to retail merchants will cover the following areas: Consumer access. Digital payment token service providers will need to make risk statements. Individual customers will be prohibited from using leverage for crypto money trading. Digital payment token service providers will need to make risk statements. Individual customers will be prohibited from using leverage for crypto money trading. Work ethic. DPT service providers isolate customer assets, reduce potential conflicts of interest, and apply complaints handling processes Gotopnews.com