On 15 August, The Monetary Authority of Singapore (MAS) released a new regulatory framework to ensure value stability for single-currency stablecoins (SCS) regulated in the city-state. The regulatory framework will apply to SCS pegged to the Singapore Dollar or any G10 currency.
The Deputy Managing Director (Financial Supervision), Ms Ho Hern Shin declared:
“MAS’stablecoin regulatory framework aims to facilitate the use of stablecoins as a credible digital medium of exchange, and as a bridge between the fiat and digital asset ecosystems. We encourage SCS issuers who would like their stablecoins recognized as “MAS regulated stablecoins” to make early preparations for compliance.”
The framework lists several critical requirements for SCS issuers including subjects requirement to ensure a high degree of value stability, maintain minimal base capital, and redemption timelines and provide some appropriate disclosures.
The MAS noted issuers that fulfill all framework’s requirements can apply to MAS and become MAS-regulated stablecoins. This label will ensure that users can distinguish MAS-regulated stablecoins from other digital payment tokens.
