Singapore MAS Sets New Stablecoin Regulatory Framework

Crypto News, The Monetary Authority of Singapore (MAS) has finalized its regulatory guidelines for stablecoins. With the primary aim of ensuring “a high degree of value stability for stablecoins regulated in Singapore,”.

Singapore MAS Sets New Stablecoin Regulatory Framework

this move comes after MAS had previously initiated public consultations regarding the framework in October of the preceding year. Feedback from these consultations was incorporated into the design of the new regulations.

Scope of the Framework

The newly minted regulations will pertain to any single-currency stablecoins that are anchored to the Singapore Dollar or any currency from the G10 group, as long as they are issued within Singapore.

Key Regulations for Issuers

MAS has outlined several core prerequisites that potential stablecoin issuers must satisfy:

• Reserve Assets: Issuers must maintain appropriate reserve assets to guarantee the stability of the stablecoin.
• Capital Base: A mandate exists for issuers to uphold a minimum capital base along with requisite liquid assets.
• Redemption: The capability to reimburse the par value of stablecoins to its holders within a window of five business days post a redemption appeal is crucial.
• Transparency: Issuers are subject to particular disclosure stipulations.

About the outcome

Providing insights on the regulatory decision, Ms. Ho Hern Shin, the Deputy Managing Director (Financial Supervision) at MAS, stated, “The goal of MAS’s stablecoin framework is to bolster the legitimacy of stablecoins as a trustworthy digital medium of exchange.

It will also serve as a conduit between conventional fiat and the burgeoning digital asset realms.” She further urged stablecoin issuers, desiring their products to be recognized as ‘MAS regulated stablecoins,’ to make early compliance preparations.