The Monetary Authority of Singapore (MAS) has announced a new regulatory framework for stablecoins, aimed at ensuring value stability.
- The new rules apply to single-currency stablecoins pegged to the Singapore dollar or any G10 currencies.
- Stablecoins are digital payment tokens that maintain a constant value.
- The framework incorporates feedback from a public consultation in October 2022.
- Stablecoin issuers who meet all requirements can apply to MAS to receive a “MAS-regulated stablecoins” label.
- Non-SCS issuers will continue to be subject to the existing regulatory regime.
Scope of MAS’s Stablecoin Regulatory Framework
Responders suggested expanding the scope of stablecoins regulated under the framework to include other currencies.
MAS clarified that the restriction to SGD and G10 currencies considers the availability of high-quality liquid assets.
Hot Take
Singapore’s new regulatory framework for stablecoins demonstrates the country’s commitment to fostering a stable and reliable digital asset ecosystem. By ensuring compliance with value stability and capital requirements, MAS aims to facilitate the use of stablecoins as a credible digital medium of exchange. While some may argue that the framework should include other prominent currencies, MAS’s focus on high-quality liquid assets provides a strong reserve backing for stablecoins. This move is a positive step towards increasing confidence and trust in the crypto market.
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