Singapore regulator completes development of rules for stablecoins


The Monetary Authority of Singapore (MAS) has completed work on a regulatory framework aimed at “ensuring a high degree of sustainability for the country’s regulated stablecoins.”

The agency defines “stablecoins” as digital payment tokens designed to maintain a constant value against one or more associated fiat currencies.

Singapore’s new rules will apply to single currency stablecoins (SCS) pegged to the Singapore dollar or any country’s currency “Big Ten”issued in the jurisdiction.

MAS identified several key requirements:

  • companies must take into account the criteria for the composition of stablecoins and ensure their proper storage;
  • assets must be backed by a minimum basic capital and have additional liquidity to reduce the risks of insolvency;
  • entities are required to pay the holders the face value of the asset within five days of the request for redemption;
  • issuers need to disclose full information to users, including data on the mechanism for maintaining the value of tokens, the rights of holders, as well as the results of the audit of reserves.

“The regulatory framework for stablecoins is aimed at facilitating their use as a trusted digital medium of exchange, as well as a bridge between traditional and cryptocurrency assets,” said Ho Hern Shin, Deputy Commissioner of the Office.

Earlier, the Monetary Authority of Singapore pledged more than $110 million to support fintech solutions in the country, including Web3.

In June, MAS presented a report summarizing its work in partnership with the Bank for International Settlements on Project Guardian. The initiative aims to study the compliance of tokenization and DeFi with international standards.

Recall that in July, the regulator decided that bitcoin exchanges serving users from Singapore must transfer client digital assets to trusts for trust management.

In the same month, a local court in a case involving Bybit recognized the USDT stablecoin as property that could be held in trust.

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