The Monetary Authority of Singapore (MAS) seeks feedback on stablecoin regulations
The MAS has released a consultation paper to gather industry feedback on its proposed regulatory approach for stablecoins and related activities in Singapore. Major crypto firms Ripple and Circle have submitted detailed responses to the consultation, sharing their perspectives on key issues like regulatory scope, stablecoin issuance requirements, reserve assets, redemption policies, and systemic risk management.
Key points:
- MAS plans to regulate “single currency pegged stablecoins” (SCS) issued in Singapore while applying existing rules to volatile crypto assets and algorithmic stablecoins.
- Ripple supports MAS’ focus on Singapore-issued SCS and suggests implementing regulations to address risks while promoting innovation.
- Circle agrees with the concentration on SCS and encourages not limiting the use of major offshore SCS in Singapore.
- Both Ripple and Circle endorse the idea of using a single label for bank and non-bank-issued SCS, proposing terms like “regulated stablecoin” or “securely-backed.”
- Ripple and Circle caution against onshore reserve requirements in Singapore for foreign currency-pegged SCS and advocate for global standards and cooperation between regulators.
Hot Take:
This consultation by the MAS shows their commitment to developing a robust regulatory framework for stablecoins in Singapore. The responses from Ripple and Circle highlight the need for well-defined regulations that strike a balance between risk mitigation and enabling innovation. The emphasis on global standards and cooperation reflects the importance of collaboration between regulators to effectively address the potential risks posed by stablecoins.
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