The Monetary Authority of Singapore (MAS) has concluded its formulation of comprehensive regulations governing stablecoins. These regulations, announced on Tuesday, are geared towards ensuring robust value stability for stablecoins under Singapore’s regulatory purview.
The MAS initiated a public consultation on this regulatory framework in October of the previous year, carefully incorporating feedback received into the design of the new rules.
The regulatory framework will be applicable to single-currency stablecoins linked to the Singapore Dollar or any other G10 currency issued within Singapore.
Potential stablecoin issuers will be subject to specific key requirements stipulated by the MAS. These include maintaining a portfolio of suitable reserve assets to uphold stability, adhering to a minimum capital base and possessing sufficient liquid assets. Furthermore, issuers must demonstrate the capacity to promptly redeem stablecoin holders’ par value within five business days of a redemption request. Transparency is also emphasized, with issuers mandated to fulfill disclosure requirements.
Ms. Ho Hern Shin, Deputy Managing Director (Financial Supervision) at MAS, expressed in a formal statement, “MAS’ stablecoin regulatory framework aims to facilitate the use of stablecoins as a credible digital medium of exchange and as a bridge between the fiat and digital asset ecosystems. We encourage SCS issuers who would like their stablecoins recognized as ‘MAS regulated stablecoins’ to make early preparations for compliance.”
This comprehensive regulatory framework reflects Singapore’s proactive approach in ensuring that the digital financial landscape aligns with the evolving nature of cryptocurrencies and stablecoins.