by The framework outlines requirements for stablecoin issuers to meet to be deemed
as regulated by the Monetary Authority of Singapore.
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 and whose circulation
exceeds 5 million Singapore dollars ($3.7 million).
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:
- Value stability: Reserve assets will be subject to requirements relating to their composition,
- valuation, custody and audit, to give a high degree of assurance of value stability.
- Capital: Stablecoin issuers must maintain minimum base capital and liquid assets to reduce the
- risk of insolvency and enable an orderly wind-down of business if necessary.
- Redemption at Par: Issuers must return the par value of the stablecoins to holders within five
- business days from a redemption request.
- Disclosure: Issuers must provide appropriate disclosures to users, including information on the
- SCS’ value stabilizing mechanism, rights of SCS holders, as well as the audit results of reserve assets.
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.
