In a bid to foster financial dialogue and cooperation, the United Kingdom and Singapore have come together to work on the development and implementation of global regulatory standards for cryptocurrencies and digital assets.
During the discussions, both nations agreed to actively contribute to efforts aimed at shaping global regulatory standards for crypto and digital assets. The trajectory of the crypto industry has remained a major concern to governments around the world including the US and the entire EU.
While the US has been involved in clamping down on firms and services that are not duly registered and are risky for consumers, the EU has released a regional regulatory framework called MiCA to help control the development and implementation of digital assets.
Improving CBDC development
The collaboration between the UK and Singapore also touched on the use of CBDCs to strengthen their partnership in the ever-evolving FinTech landscape. CBDCs (Central Bank Digital Currencies) are digital forms of a country’s fiat currency issued and regulated by its central bank. They aim to complement physical cash and traditional banking systems, allowing for faster, more efficient transactions and financial inclusion.
The UK shared updates on its “Digital Pound” consultation and the ongoing design phase, while Singapore provided insights into exploring use cases for a digital Singapore Dollar and wholesale CBDC for cross-border foreign exchange settlement. Both countries pledged to continue exchanging insights and experiences on CBDCs.
The two nations also stated that their commitment extends to participation in international standard-setting bodies such as the International Organization of Securities Commissions (IOSCO) and working groups under the Financial Stability Board (FSB). Additionally, they welcomed the FSB’s recommendations on crypto-assets, including stablecoins.
Another aspect of the meeting also included e-wallets, with the UK welcoming the outcome of the Monetary Authority of Singapore’s (MAS) review of e-wallet caps, which led to increased limits imposed on e-wallets.
Both the UK and Singapore have shown over time their commitment to helping direct the digital asset industry in a safer direction for the safety of users.