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 whose circulation exceeds $3.7 million (5 million Singapore dollars).
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…
