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British and Singaporean officials met in London this week for the 10th UK-Singapore Financial Dialogue, using the talks to align approaches to digital finance, including tokenized assets and artificial intelligence.
Held on Wednesday, the meeting brought together representatives from the UK’s Financial Conduct Authority and the Monetary Authority of Singapore, as well as other financial and regulatory representatives.
The two countries agreed to continue working together on Project Guardian, a joint initiative between regulators and the investment sector aimed at testing the real-world potential of tokenized financial assets.
The next phase will involve closer collaboration with industry groups such as the UK Investment Association and the Investment Management Association of Singapore, with a focus on how tokenization could reshape investment from a client perspective.
Discussions also touched on the Global Layer One initiative, which both nations back. The UK shared its early experience with the project, while Singapore provided updates on progress.
GL1 aims to create shared ledger systems that enable the trading of tokenized assets across borders with reduced technical and regulatory barriers.
A new age
Alongside the promise of digital innovation, the talks also demonstrate how governments are grappling with rapidly evolving regulatory challenges in the digital space.
Singapore’s recent tightening of crypto exchange rules—announced just days earlier—marks growing concerns in the country about risks of financial crime and market instability related to crypto.
Meanwhile, the UK is attempting to strike a balance between encouraging tech sector growth and preventing misuse, particularly in the realm of AI.
Artificial intelligence drew significant attention during the talks.
The FCA and MAS examined the state of AI adoption in the financial sector, including current applications, risks, and roadblocks to further rollout.
Both sides agreed to initiate a formal collaboration on AI, commencing with an AI Innovation Showcase in London on Wednesday, which highlighted financial-sector tools and services developed in both countries.
The UK, which has seen a surge of political focus on AI, has launched an action plan to boost economic growth through AI and digital infrastructure. In January, the Labour government laid out goals for AI growth zones and a National Data Library.
But efforts to allow AI developers to mine copyrighted content for training purposes have faced fierce opposition.
A proposed change to the UK’s Data (Use and Access) Bill was rejected for the fourth time last month in the House of Lords after public backlash and warnings from musicians and artists about threats to creative rights.
Singapore, on the other hand, has opted for a lighter-touch approach.
While it does not yet have AI-specific laws, the government has issued a suite of ethical guidelines and practical tools to steer responsible development without stifling innovation.
Edited by Sebastian Sinclair