Singapore’s Central Bank Releases Regulatory Framework for Stablecoins
The Monetary Authority of Singapore (MAS), the city-state’s de-facto central bank, announced its revised regulatory framework for stablecoins, aimed to “ensure a high degree of value stability for stablecoins regulated in Singapore.”
Released Tuesday, the new rules will apply to any single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currencies, that are issued in Singapore including the euro, United States dollar and British pound, the central bank announcement noted.
Stablecoins are digital payment tokens (DPT) pegged to legal tender like national currencies and maintain a constant value, unlike other volatile cryptos like Bitcoin (BTC) or Ether (ETH).
The new stablecoin regulatory outline accounts for feedback from an October 2022 public consultation on the overall regulatory approach for stablecoin-related issuance and intermediation activities.
“MAS has carefully considered the feedback received and has incorporated them where appropriate,” a separate response to stablecoin consultation document said. “This paper represents MAS’ finalized regulatory approach towards stablecoins in Singapore.”
Furthermore, the central bank noted that only stablecoin issuers who fulfill all requirements under the framework such as value stability, and maintaining minimum base capital, can apply to MAS to receive a label called – “MAS-regulated stablecoins”.
Ho Hern Shin, Deputy Managing Director at MAS said that SCS issuers who wish their stablecoins to be recognized by the central bank should make early preparations for compliance.
“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.”
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