Ravi Menon’s 2022 speech encapsulated a policy that continues to guide stablecoin support, wholesale CBDC experiments, and selective licensing while restricting retail crypto speculation.

The Policy Dichotomy: Yes to Innovation, No to Speculation

On 29 August 2022, at the Green Shoots Seminar, Monetary Authority of Singapore (MAS) Managing Director Ravi Menon delivered what remains the definitive articulation of the city-state’s bifurcated approach to digital assets. The framing was unambiguous: “Yes to Digital Asset Innovation, No to Cryptocurrency Speculation.”

Menon drew a sharp distinction between the underlying technology of distributed ledgers and tokenisation—which he argued holds “transformative economic potential”—and cryptocurrencies, which he characterised as having “taken a life of their own outside of the distributed ledger.” This distinction, he said, is “the source of the crypto world’s problems.”

MAS sees good potential in stablecoins, provided they are “securely backed by high quality reserves and well regulated.” For wholesale central bank digital currencies (CBDCs), particularly for cross-border payments and settlements, MAS sees strong potential. However, MAS does not see a compelling case for retail CBDCs in Singapore.

“Innovation and regulation are not incapable of co-existing,” Menon stated. “We do not split the difference by being less stringent in our regulation or being less facilitative of innovation.” This framing has shaped every subsequent regulatory action and industry engagement.

Building a Responsible Digital Asset Ecosystem

MAS has been actively experimenting with digital currency connectivity since 2016, beginning with Project Ubin, a multi-phase collaboration with industry partners to explore the use of blockchain and distributed ledger technology for clearing and settlement of payments and securities.

In 2022, Project Guardian was launched to test asset tokenisation and decentralised finance (DeFi) applications, bringing together DBS Bank, JP Morgan, SBI Group, and Marketnode. The project aims to explore how tokenised assets and DeFi protocols could improve liquidity, efficiency, and accessibility in capital markets.

A concrete outcome from this ecosystem: UOB Bank issued a SG$600 million digital bond on Marketnode’s digital asset platform in July 2022.

Value (SG$ million)Source: Orionmano Industries

MAS continues to issue Digital Payment Token (DPT) service licenses, selectively approving entities that demonstrate strong risk management capabilities and value propositions. The regulator’s stated aim is to “anchor in Singapore crypto players who can add value to our digital asset ecosystem.”

Speaking at the Singapore FinTech Festival in November 2025, MAS Managing Director Chia Der Jiun spoke about two transformative themes for the next decade: fostering responsible AI adoption and “building a tokenised future.” This vision was reinforced by two MoUs signed at the same event: one with the UK Financial Conduct Authority on AI-in-Finance, and one with Indonesia’s Otoritas Jasa Keuangan (OJK) on deepening collaboration in financial technology and digital financial assets.

MAS also controls experimentation through regulatory sandboxes and knowledge-sharing ventures. Public-private collaborations such as Project Ubin and Project Guardian serve as frameworks for testing scalability and identifying potential issues before broader deployment.

Regulatory Guardrails Against Speculation

While MAS has actively fostered institutional-grade digital asset activity, it has simultaneously erected significant barriers to retail cryptocurrency speculation.

In 2022, MAS issued a consultation paper proposing enhanced regulatory measures for DPT service providers, including consumer access limits for retail customers and new business conduct requirements. The measures also proposed enhanced technology and cyber risk management frameworks.

MAS acknowledged that cryptocurrencies “serve no useful function outside a blockchain network except as a vehicle for speculation.” Despite this assessment, the regulator chose not to prohibit cryptocurrency services to retail investors entirely. The rationale was pragmatic: given the cross-border nature of cryptocurrency trading, a domestic ban “would not prevent Singapore retail investors from participating in overseas offers that can be extended to them online.”

Instead, MAS’s strategy is three-pronged: anchor high-quality players with strong risk management; mitigate risks of consumer harm through regulatory measures; and educate consumers on the risks of cryptocurrencies and related services. “Despite the negative news associated with some stablecoins lately,” MAS noted in its consultation paper, stablecoins—unlike cryptocurrencies—can serve as a “credible digital medium of exchange” within a regulated digital asset ecosystem.

MAS has acknowledged that its policy message can appear contradictory. “What does MAS really want? Well, we know what we want but I think we need to do a better job of explaining it,” Menon said at the August 2022 seminar. The explanation centres on the distinction between utility (digital asset innovation) and speculation (cryptocurrency trading) as fundamentally different activities requiring different regulatory responses.

Strategic Vision and Global Positioning

MAS’s dual strategy is part of a broader ambition: to position Singapore as “an innovative and responsible global digital asset hub.” This vision, articulated by Menon, emphasises substance over scale. The goal is not to attract the highest number of crypto businesses but to cultivate quality players that contribute meaningfully to the financial ecosystem.

Chia Der Jiun’s remarks at the Singapore FinTech Festival 2025, where he outlined a “tokenised future,” signal that MAS sees tokenisation—not speculation—as the enduring value proposition of distributed ledger technology. The development of a shared ledger infrastructure through the Global Layer One project represents the next phase of this strategy, potentially enabling interoperable, institution-grade digital asset markets across jurisdictions.

Singapore’s measured approach contrasts with both the laissez-faire posture of some jurisdictions and the outright prohibitions of others. By simultaneously advancing wholesale CBDC experiments, stablecoin regulation, and selective DPT licensing while restricting retail access, MAS is attempting to build what it calls “a synergistic and holistic approach.”

As stablecoin regulation is finalised in the current regulatory cycle and Global Layer One infrastructure matures, Singapore’s bifurcated policy is likely to deepen rather than shift. The city-state aims to remain a committed digital asset hub—but on terms defined by risk management and institutional utility, not retail speculation.