SINGAPORE, Aug 16 (NNN-XINHUA) – The Monetary Authority of Singapore (MAS), yesterday announced the features of a new regulatory framework, that seeks to ensure a high degree of value stability for stablecoins regulated in Singapore.
The regulatory framework takes into account feedback received, following an Oct, 2022 public consultation, according to a statement from MAS.
Stablecoins are digital payment tokens, designed to maintain a constant value against one or more specified fiat currencies. When well-regulated to preserve such value stability, stablecoins can serve as a trusted medium of exchange to support innovation, including the “on-chain” purchase and sale of digital assets.
MAS’ stablecoin regulatory framework will apply to single-currency stablecoins (SCS), pegged to the Singapore dollar or any G10 currency, that are issued in Singapore. Issuers of such SCS will have to fulfill key requirements relating to value stability, capital, redemption at Par and disclosure.
Only stablecoin issuers that fulfill all requirements under the framework can apply to MAS for their stablecoins to be recognised and labelled as “MAS-regulated stablecoins.”
Users should make their own informed decisions on the accompanying risks should they choose to deal in stablecoins that are not regulated under MAS’ framework.
These penalties could include financial penalties or imprisonment in the case of an individual.
Ho Hern Shin, deputy managing director of Financial Supervision at MAS, said, the 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.– NNN-XINHUA
