MAS or the Monetary Authority of Singapore has unveiled a comprehensive regulatory framework tailored for stablecoins within the country. The framework, designed to ensure robust value stability of these digital assets, encompasses all stakeholders including issuers, blockchain platforms, and intermediaries engaged with Singapore dollar-backed stablecoins. Its primary objective is to foster the expansion of stablecoins while simultaneously safeguarding against potential risks.
Under the new guidelines, entities involved with stablecoins are mandated to acquire a license from MAS. The license entails adherence to several key requirements, such as the submission of audited annual financial statements and transparent data pertaining to the assets supporting the stablecoin. This thorough approach aims to create a secure and transparent environment for stablecoin activities, promoting confidence among market participants.
MAS’s move to introduce this regulatory framework underscores Singapore’s commitment to cultivating a balanced ecosystem for digital assets. By promoting the responsible growth of stablecoins through well-defined regulations, the nation aims to position itself as a hub for innovation while simultaneously safeguarding the interests of investors and consumers alike.