Regulators from Japan and Singapore have recently inked a deal to work jointly on a crypto pilot, aiming to test crypto projects for their feasibility.
Japan and Singapore have recently announced their collaboration on a crypto pilot that involves Project Guardian initiated by the Monetary Authority of Singapore (MAS). Japan’s Financial Services Authority (FSA) has joined the crypto pilot as an observer and will work with the MAS.
The joint effort will involve testing the viability of the use cases of emerging digital technologies such as asset tokenization. At the same time, it will look towards managing risks for the applications. The various industry pilots include asset and wealth management, fixed income and foreign exchange.
A senior official of the FSA, Mamoru Yanase, said, “We are delighted to join the Project Guardian as an observer. Decentralized financial ecosystem continues to develop in complexity, and it is important to address emerging risks. Blockchain technology including web3 has a potential to become a strong driver of innovation.”
The FSA welcomed the initiative and looked forward to working with the MAS. Project Guardian is a major milestone in crypto regulation and its use cases. The project has various goals, ranging from trust anchors to institutional-grade DeFi protocols. The initiative has major corporations like JP Morgan and DBS Bank working on several projects.
The FSA and MAS have jointly worked in the past, which could be a testament to their partnership. The current collaboration occurred just after Japan relaxed tax rules for their crypto firms.