UK and Singapore Strengthen Digital Finance Ties with Focus on AI and Tokenization
- Antwan Koss
- July 4, 2025
- Legal
- 0 Comments
UK and Singapore Deepen Financial Ties in Latest Talks
This week in London, British and Singaporean officials sat down for their 10th financial dialogue—a regular check-in between two of the world’s most interconnected markets. The meeting wasn’t just about the usual trade chatter, though. This time, the focus was squarely on digital finance, from tokenized assets to the messy, fast-moving world of AI regulation.
Representatives from the UK’s Financial Conduct Authority (FCA) and Singapore’s Monetary Authority (MAS) led the discussions, along with other regulators and financial heavyweights. The tone was collaborative, but with an undercurrent of urgency. Both countries are trying to figure out how to keep up with technology without leaving stability behind.
Project Guardian Moves Forward
One concrete takeaway? The two sides agreed to keep pushing ahead with *Project Guardian*, their joint experiment in tokenized assets—essentially, turning traditional investments into digital tokens that can be traded more easily. The next phase will involve closer work with industry groups, including the UK Investment Association and its Singaporean counterpart.
The goal isn’t just technical. They’re looking at how these changes might actually affect investors—whether it’s faster settlements, lower costs, or (let’s be honest) new risks.
There was also talk about the *Global Layer One* (GL1) initiative, which both countries support. The UK shared some early lessons, while Singapore updated on its progress. The idea behind GL1 is simple in theory, tricky in practice: create shared systems so tokenized assets can move across borders without tripping over regulatory or technical hurdles.
AI: Promise and Pushback
Artificial intelligence took up a big chunk of the conversation. The FCA and MAS compared notes on how AI is being used in finance right now—fraud detection, customer service, that kind of thing—and where it might go next. They agreed to start a formal partnership, kicking off with an AI showcase in London this week.
But the broader picture is less tidy. The UK’s government has been all-in on AI as an economic driver, with plans for growth zones and a National Data Library. Yet its attempt to let AI firms scrape copyrighted material for training data has hit a wall. A proposed law change was shot down *again* last month after artists and musicians raised hell about losing control over their work.
Singapore, meanwhile, has taken a softer approach. No hard AI laws yet, just guidelines and toolkits to nudge developers toward ethical choices. It’s a different style—less heavy-handed, maybe, but with its own gaps.
Regulation in a Fast-Changing World
The talks highlighted a shared challenge: how to regulate without smothering innovation. Singapore just tightened rules on crypto exchanges, citing concerns over fraud and market chaos. The UK, meanwhile, is wrestling with how to encourage tech growth while keeping AI and digital finance from going off the rails.
Neither side has all the answers. But these dialogues, awkward as they sometimes are, at least keep the conversation moving. And right now, that might be the best anyone can do.
