Singapore central bank releases regulatory framework for stablecoins
Singapore's central bank has released a revised regulatory framework aimed at ensuring stability for single-currency stablecoins (SCS) regulated in the city-state.
The Monetary Authority of Singapore announced the framework on Aug. 15 which is aimed at non-bank issued stablecoins pegged to the value of the Singapore dollar or G10 currencies such as the euro, British pound and United States dollar whose circulation exceeds $3.7 million (5 million Singapore dollars).
The bank's financial supervision deputy managing director Ho Hern Shin said the framework aims to facilitate stablecoin use "as a credible digital medium of exchange and as a bridge between the fiat and digital asset ecosystems."
Shin encouraged stablecoin issuers to prepare for compliance if they wanted their stablecoin to be labeled as MAS-regulated.
The framework outlines several requirements for stablecoin issuers including redemption timelines, disclosures, reserve management and capital requirements, per MAS:
MAS noted only stablecoin issuers that fulfill the new framework's requirements can apply to become MAS-regulated — a label the central banks says ensures they can be distinguished from non-regulated stablecoins by users.
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It warned those who represent a token as being MAS-certified would be subject to penalties set out in the new framework which include fines and imprisonme along with being added to an alert list.
The revised regulatory framework accounts for feedback from an October 2022 public consultation. MAS will need to hold consultations and parliament must pass amendments that would enforce the framework.
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