As Singapore continues to warm up to the adoption of stablecoins in its economy, the Monetary Authority of Singapore (MAS) has released a new regulation to provide more regulatory clarity for the industry.
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Singapore Regulates Stablecoins.
The Monetary Authority of Singapore has unveiled a finalized regulatory framework to govern stablecoin issuers operating within the country. The framework outlines key requirements for entities offering stablecoin-related services, including issuance and custody. In October 2022, the regulator had issued a consultation paper seeking feedback from relevant stakeholders and interested parties on the proposed regulatory framework. The recently released framework takes into account the feedback received and aims to ensure a high level of value stability for stablecoins operating under Singapore's regulatory purview.
Highlights From The Regulation
The Monetary Authority of Singapore (MAS) has introduced a framework for regulating single-currency stablecoins (SCS) pegged to the Singapore Dollar or any G10 currencies, including the United States Dollar. The framework will only govern non-bank issuers of SCS in circulation exceeding $3.7 million (5 million Singapore dollars) in value. These issuers must obtain a Major Payment Institution (MPI) license and comply with other requirements, such as holding their reserve assets in the currency of the stablecoin peg, which will be held in segregated accounts on trust. The issuers must also provide carry out a monthly independent audit of their reserves, with the report submitted to MAS and posted on the company’s website. Furthermore, issuers must reply promptly to redemption requests as they are required to return the fiat value of the single-currency stablecoin within five business days of the holder’s request. The US House Financial Services Committee is currently pushing for the adoption of the Stablecoin Bill, which will guide how stablecoins are registered and issued.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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