On Nov. 13, 2024, MAU CB published final Guideline for virtual asset related activities.
Principles to be followed by banks involved in activities related to virtual assets.
Based on standards of Basel Committee on Banking Supervision on crypto exposures.
Applies to banks licensed under Banking act 2004 involved in virtual asset activities.
Details responsibilities of the board and senior management; regulatory approval and notification; risk management framework and the classification of virtual assets.
Capital requirements; risk, compliance, assurance; reporting; disclosure requirements.
Risk management framework covers credit, concentration, liquidity, market, operation, cyber and technology, valuation, money laundering and terrorism financing risks.
Guideline applicable with immediate effect, full compliance required by May 31, 2025.
MAU CB issued public consultation on the guideline for virtual asset related activities.
Follows MAU FSC Jun. 2022 consulted virtual asset/ITO service rules, see #139678.
Background
Virtual asset and initial token offering services act 2021 (VAITOS Act), in force Feb. 7, 2022, offers regulatory framework for virtual assets/initial token offering (ITO) activity.
Empowers MAU FSC to regulate/supervise, ITO issuers, virtual asset service providers.
Banks may provide services to VAS providers, ITO issuers and virtual asset customers.
MAU CB has therefore developed a draft guideline for virtual asset related activities, which sets out a framework for banks when they are dealing with such activities.
Effectiveness
Responses to be received by Dec. 30, 2022.
Nov. 2024 MAU CB Final Guideline
On Nov. 13, 2024, MAU CB published final Guideline for virtual asset related activities.
Principles to be followed by banks involved in activities related to virtual assets.
Based on standards of Basel Committee on Banking Supervision on crypto exposures.
Applies to banks licensed under Banking act 2004 involved in virtual asset activities.
Details responsibilities of the board and senior management; regulatory approval and notification; risk management framework and the classification of virtual assets.
Capital requirements; risk, compliance, assurance; reporting; disclosure requirements.
Risk management framework covers credit, concentration, liquidity, market, operation, cyber and technology, valuation, money laundering and terrorism financing risks.
Guideline applicable with immediate effect, full compliance required by May 31, 2025.
