The U.K and and Singapore have agreed to pursue collaborations on several areas related to digital finance, including the use of artificial intelligence in finance and asset tokenization.
During the 10th Financial Dialogue held in London recently, representatives from both countries discussed possible areas of collaboration in a number of key areas including digital finance, digital innovation, sustainable finance, capital markets and international regulatory developments.
With digital finance in particular, financial authorities from the two countries agreed to deepen collaboration through joint work forged between the U.K.’s Investment Association and the Investment Management Association of Singapore.
According to the release posted on the MAS official site, the collaboration will seek to dive into the impact of asset tokenization from the perspective of retail investors. Not only that, the joint work will also aim to further advance the mainstream adoption of tokenized assets in both regional markets.
One of the tokenization projects brought up during the bilateral talks on web3 involved Project Guardian, which is an initiative led by the MAS to explore the use of asset tokenization and decentralized finance in order to improve the efficiency and liquidity of financial markets.
The FCA and MAS have formally agreed to continue working together on Project Guardian. The next phase of the project will see stronger cooperation involving industry organizations, such as the UK Investment Association and the Singapore Investment Management Association.
The U.K. also talked about progress made in the Global Layer One initiative since it joined, while Singapore provided updates on the GL1’s progress and its key focus areas.
Singapore and the U.K. coordinate to expand AI
During the talks, Singaporean and U.K financial authorities agreed to establish joint collaboration efforts in the field of artificial intelligence. The partnership will focus specifically on sharing information between the two countries regarding innovative AI solutions and cross-border usage for AI. The most recent initiative being the FCA-MAS AI Innovation Showcase held in London on July 3.
Moreover, representatives from the U.K. and Singapore also discussed the adoption of AI in the financial services sector, including recent trends, emerging use cases, challenges in pushing adoption and their respective approaches to AI regulation.
Most recently, the MAS made headlines by enforcing a deadline for unlicensed crypto firms to stop offering services in the region by June 30 at the latest. Many offshore firms with employees based in the region, such as Bitget and Bybit, declared plans to relocate their Singaporean employees to other hubs.
