The Monetary Authority of Singapore has unveiled a fresh set of regulatory guidelines with the intent of enhancing the solidity of the country's authorized stablecoins.
This novel set of regulations will be applicable to single-currency stablecoins (SCS) that are pegged to either the Singapore Dollar or any G10 currency, and are issued within the jurisdiction of Singapore.
Entities responsible for these SCS must adhere to specific prerequisites pertaining to the stability of their value. These requisites encompass details concerning their composition, valuation, safekeeping, and auditing. Additionally, the guidelines introduce new mandates for capital, along with rules governing redemption and disclosure.
The primary objective of these updated regulations is to ensure an organized cessation of unstable stablecoin initiatives, guaranteeing the complete reimbursement of value to stakeholders.
Stablecoin issuers who completely fulfill all the conditions stipulated within this framework are eligible to request recognition from MAS (Monetary Authority of Singapore), thereby attaining the designation of 'MAS-sanctioned stablecoins'. It's crucial to note that any distortion of this label could lead to severe financial penalties and legal consequences.
Ho Hern Shin, the deputy managing director of MAS, emphasized that these regulations are formulated to expedite the adoption of stablecoins as a reliable digital medium for transactions. Additionally, they serve as a vital link between traditional fiat and the digital asset ecosystems. SCS issuers aspiring to attain the status of "MAS-regulated stablecoins" are advised to initiate preparatory measures for ensuring compliance in advance.