The Monetary Authority of Singapore has finalized the regulatory framework for stablecoins. Issuers must meet requirements such as disclosure of information.
2023-08-15 05:37
Odaily News: The Monetary Authority of Singapore (MAS) has announced on its official website that it has finalized the regulatory framework for stablecoins. The framework takes into consideration the feedback received from a public consultation held in October 2022.
MAS defines stablecoins as digital payment tokens designed to maintain a stable value relative to one or more specified fiat currencies. When properly regulated to ensure stability, stablecoins can serve as trusted mediums of exchange to support innovations, including on-chain purchase and sale of digital assets.
The regulatory framework for stablecoins by MAS will apply to single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency. Issuers of such SCS must meet the following key requirements:
1. Value Stability: The reserves backing the SCS must fulfill requirements regarding composition, valuation, custody, and audits to ensure high value stability.
2. Capital: Issuers must maintain minimum base capital and liquid assets to reduce bankruptcy risks and orderly wind down operations if necessary.
3. Redemption at Par: Issuers must return the face value funds of SCS to holders within five working days of redemption requests.
4. Disclosure: Issuers must provide appropriate disclosure to users, including information about the value stability mechanism of the SCS, SCS holder rights, and audit results of reserve assets.
Only stablecoin issuers that meet all requirements under this framework can apply to MAS for their stablecoin to be recognized and be tagged as "MAS-regulated stablecoin." This tag will enable users to easily differentiate MAS-regulated stablecoins from other digital payment tokens. Any issuer falsely promoting their token as an "MAS-regulated stablecoin" may be penalized under the MAS stablecoin regulatory framework and listed on MAS's investor alert list. Users should make informed decisions about the associated risks when choosing to transact with stablecoins not regulated under the MAS framework.
MAS defines stablecoins as digital payment tokens designed to maintain a stable value relative to one or more specified fiat currencies. When properly regulated to ensure stability, stablecoins can serve as trusted mediums of exchange to support innovations, including on-chain purchase and sale of digital assets.
The regulatory framework for stablecoins by MAS will apply to single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency. Issuers of such SCS must meet the following key requirements:
1. Value Stability: The reserves backing the SCS must fulfill requirements regarding composition, valuation, custody, and audits to ensure high value stability.
2. Capital: Issuers must maintain minimum base capital and liquid assets to reduce bankruptcy risks and orderly wind down operations if necessary.
3. Redemption at Par: Issuers must return the face value funds of SCS to holders within five working days of redemption requests.
4. Disclosure: Issuers must provide appropriate disclosure to users, including information about the value stability mechanism of the SCS, SCS holder rights, and audit results of reserve assets.
Only stablecoin issuers that meet all requirements under this framework can apply to MAS for their stablecoin to be recognized and be tagged as "MAS-regulated stablecoin." This tag will enable users to easily differentiate MAS-regulated stablecoins from other digital payment tokens. Any issuer falsely promoting their token as an "MAS-regulated stablecoin" may be penalized under the MAS stablecoin regulatory framework and listed on MAS's investor alert list. Users should make informed decisions about the associated risks when choosing to transact with stablecoins not regulated under the MAS framework.
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