Singapore Releases Stablecoin Regulatory Framework
The Monetary Authority of Singapore (MAS) has released a finalized regulatory framework to regulate stablecoin issuers in the country. The framework aims to provide more regulatory clarity for the industry and ensure value stability for stablecoins regulated in Singapore.
Key Points:
- The framework applies to single-currency stablecoins (SCS) pegged to the Singapore Dollar or any G10 currencies.
- Non-bank issuers with SCS in circulation exceeding $3.7 million (5 million Singapore dollars) must obtain a Major Payment Institution (MPI) license and comply with other requirements.
- Issuers are required to hold reserve assets in the currency of the stablecoin peg, which will be held in segregated accounts on trust.
- Stablecoin issuers must provide a monthly independent audit of their reserves and promptly reply to redemption requests.
- The MAS believes that well-regulated stablecoins can serve as a credible digital medium of exchange.
Hot Take:
The release of Singapore’s stablecoin regulatory framework is a significant step towards establishing a clear and secure environment for stablecoin issuers. By setting requirements for issuers and promoting transparency, the framework aims to ensure value stability for stablecoins regulated in Singapore. This move aligns with the global trend of regulatory authorities taking steps to regulate and provide clarity for the growing stablecoin industry.
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