The Monetary Authority of Singapore (MAS) has released a document titled "MAS Finalizes Stablecoin Regulatory Framework."
MAS's stablecoin regulatory framework will apply to single-currency stablecoins (SCS) issued in Singapore that are pegged to the Singapore dollar or any G10 currency. Issuers of such SCS must meet the following key requirements:
- Value Stability: The reserve assets of SCS will be subject to requirements regarding their composition, valuation, custody, and auditing to ensure a high level of value stability.
- Capital: Issuers must maintain minimum basic capital and liquid assets to reduce bankruptcy risk and orderly wind down operations when necessary.
- Redemption at Face Value: Issuers must refund the face value of SCS to holders within five working days after redemption requests.
- Disclosure: Issuers must provide appropriate disclosures to users, including information about SCS value stabilization mechanisms, SCS holder rights, and results of reserve asset audits.
Only stablecoin issuers that meet all the requirements of this framework can apply to MAS to have their stablecoins recognized and labeled as "MAS-regulated stablecoins."
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Policy and Regulation
Stablecoins
