- The purpose of the Guardian project is to assess the relevance and potential of the use of digital technologies
- It has four directions
June 26 Japan Financial Services Authority (FSA) announced on cooperation with the Monetary Authority of Singapore (MAS) for the purpose of joint regulation and pilot testing of crypto projects under the Project Guardian initiative. At the current stage, the participation of the FSA will be limited to the observer function. Both regulators released a joint statement:
“The goal of the project is to conduct pilot experiments to test the suitability and suitability of using digital technologies such as asset tokenization”
And FSA spokesman, Mamoru Yanase, stated that “the decentralized financial ecosystem continues to become more complex, and it is important to address emerging risks.”
The Guardian Project, launched by MAS in May 2022, aims to evaluate the “usability of asset tokenization and DeFi protocols” in accordance with regulatory requirements. It includes four key areas: the development of open and interoperable networks, the use of trust anchors, asset tokenization, and institutional grade DeFi protocols.
The Guardian is another example of cooperation between the FSA and MAS, but not the first. In 2017, both regulators launched a fintech cooperation program to promote innovation in their respective markets.