The MAS has released a stablecoin regulatory framework.

Janak9955

The Monetary Authority of Singapore (MAS) has issued a revised regulatory framework aimed at ensuring the stability of Singapore Dollar (SGD) denominated single-currency stablecoins (SCS). MAS announced this framework on August 15th, targeting non-bank issuers of stablecoins that are pegged to the Singapore Dollar or G10 currencies like Euro, British Pound, and US Dollar, with a total circulation exceeding SGD 5 million (USD 3.7 million).

Ho Hern Shin, the Managing Director of the Monetary Authority of Singapore, stated that the framework intends to promote the use of stablecoins as "a trusted digital means of exchange and a bridge between fiat currencies and the digital asset ecosystem." He encourages stablecoin issuers to be prepared for compliance if they want their stablecoins to carry the MAS-regulated label.

The framework outlines several requirements from MAS for stablecoin issuers, including redemption schedules, disclosure, reserve management, and capital requirements:

1. Value Stability: The composition, valuation, custody, and auditing of reserve assets must meet requirements to ensure high value stability.
2. Capital: Stablecoin issuers must maintain minimum base capital and liquid assets to reduce bankruptcy risk and orderly wind down operations when necessary.
3. Full Face-Value Redemption: Issuers must return the full face value of stablecoins to holders within five working days after redemption requests.
4. Disclosure: Issuers must provide appropriate disclosures to users, including information on SCS value stabilization mechanisms, SCS holder rights, and audit results of reserve assets.

MAS notes that only stablecoin issuers who meet the requirements of the new framework can apply for MAS regulation. The central bank states that this label ensures that users can distinguish them from unregulated stablecoins. It warns that tokens certified by MAS will be subject to penalties as stipulated in the new framework, including fines and imprisonment, and will be added to the alert list.

The revised regulatory framework incorporates feedback from a public consultation held in October 2022. The regulator is conducting consultations, and parliamentary amendments are necessary for the framework to be enforced.

Jafar224

The stablecoin market is still quite significant.

Jatin255

There has also been an announcement regarding stablecoin regulation.