Singapore’s MAS Implements Robust Regulations for Stablecoins to Ensure Stability
The Monetary Authority of Singapore (MAS) has introduced new regulations for stablecoins to enhance their stability within the city-state.
The framework, developed since October 2022 with public input, focuses on single-currency stablecoins (SCS) pegged to the Singapore Dollar or other G10 currencies issued in Singapore. Key mandates for stablecoin issuers encompass maintaining ample reserve assets for stability assurance, a minimum capital base, and liquid asset requisites to mitigate insolvency risks.
Furthermore, issuers must promptly redeem the par value of stablecoin holders within five business days, adhere to disclosure norms, and provide audited reserve asset results. MAS aims to foster credible digital exchange using stablecoins as a bridge between fiat and digital assets, encouraging early preparations for compliance.
While other stablecoin types will remain permissible, they will be subject to the existing Digital Payment Token regulatory framework. MAS remains open to adapting the framework for other token types and closely monitors the stablecoin landscape.
Clever Robot News Desk 16th August 2023
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