Japan’s FSA Joins MAS’ “Project Guardian” as First Overseas Regulator

The Financial Services Authority (FSA) of Japan has announced its participation in the Monetary Authority of Singapore’s (MAS) “Project Guardian” initiative. This collaborative project, which was established by MAS in May 2022, aims to explore the feasibility of applying digital technologies to various asset classes while ensuring financial stability and integrity.

Under the terms of the cooperation framework, the FSA will join Project Guardian in an observer capacity, leveraging its expertise and knowledge to contribute to the project’s objectives. The initiative focuses on conducting pilot experiments, including asset tokenization, in sectors such as fixed income, foreign exchange, and asset and wealth management.

Mr. Leong Sing Chiong, Deputy Managing Director of MAS, expressed enthusiasm for the FSA’s participation, emphasizing the importance of public-private collaboration in fostering a responsible and innovative digital asset ecosystem. He welcomed the opportunity for increased cooperation with the FSA to support global efforts in this area.

Mr. Mamoru Yanase, Deputy Director-General of the Strategy Development and Management Bureau at the FSA, expressed delight at joining Project Guardian. He acknowledged the growing complexity of the decentralized financial ecosystem and the need to address emerging risks. Mr. Yanase also recognized the potential of blockchain technology, including web3, as a powerful driver of innovation. He expressed eagerness to collaborate with MAS, traditional financial institutions, and fintech firms to enhance knowledge in this rapidly evolving field.

The participation of the FSA in Project Guardian is a significant milestone, highlighting the international cooperation and commitment to exploring the potential of digital assets. As governments and financial institutions worldwide recognize the transformative power of blockchain and digital technologies, initiatives like Project Guardian are instrumental in developing robust frameworks and fostering innovation in the digital asset space.

According to MAS, the Financial Services Authority (FSA) of Japan is the first overseas regulator to join “Project Guardian.” MAS stated, “MAS is also pleased to welcome the Japan Financial Services Agency (JFSA) as the first overseas financial regulator to join Project Guardian. This paves the way for MAS and the JFSA to collaborate on digital asset innovation and best practices for asset tokenization, while safeguarding against risks to financial stability and integrity.”