The Monetary Authority of Singapore has recently finalized new regulations for stablecoins. The framework’s goal is to ensure stable value for regulated stablecoins in Singapore.
After collecting feedback during a public consultation that began in October last year, the regulator incorporated it into the design of the new rules.
These rules will apply to single-currency stablecoins pegged to the Singapore Dollar or other G10 currencies issued in Singapore. Potential issuers must meet various requirements, including maintaining appropriate reserve assets, a minimum capital base, and liquid assets.
They must also be able to redeem stablecoins within five business days and adhere to disclosure requirements. Ms. Ho Hern Shin, Deputy Managing Director (Financial Supervision) at MAS, mentioned that the framework intends to promote stablecoins’ credibility as digital exchange mediums and bridges between fiat and digital assets.
She urged SCS issuers to prepare for compliance if they want their stablecoins recognized as “MAS regulated stablecoins.”