The Monetary Authority of Singapore (MAS) on Wednesday announced new regulatory framework for stablecoins. The new regulatory framework is based on feedback received during its October 2022 public consultation, the regulatory body said in a statement.
“Only stablecoin issuers that fulfil all requirements under the framework can apply to MAS for their stablecoins to be recognised and labelled as “MAS-regulated stablecoins”. This label will enable users to readily distinguish MAS-regulated stablecoins from other digital payment tokens, including “stablecoins” which are not subject to MAS’ stablecoin regulatory framework,” Ms Ho Hern Shin, Deputy Managing Director (Financial Supervision) at MAS, said in the written statement.
Any person that misrepresents a token as an “MAS-regulated stablecoin”, may be subject to penalties under MAS’ stablecoin regulatory framework, and placed on MAS’ Investor Alert List. 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, the statement added.
The 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 fulfil key requirements relating to: value stability, capital, redemption at par, and disclosure.
Ms Ho Hern Shin, Deputy Managing Director (Financial Supervision), MAS, said, “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. We encourage SCS issuers who would like their stablecoins recognised as “MAS regulated stablecoins” to make early preparations for compliance.”
