- Singapore’s MAS introduces innovative stablecoin regulations for transparency and stability.
- Framework targets nonbank issuers of single-currency stablecoins linked to significant G10 currencies, triggered above 5 million SGD.
- Well-regulated stablecoins support credible exchange and blockchain innovation, according to the authority.
- Regulations ensure systematic resolution for unstable stablecoins, protecting investors’ value.
- Seeking ‘MAS-regulated stablecoins’ requires strict adherence to framework, falsification leads to penalties.
- Ho Hern Shin, Deputy MD of MAS, aims for stablecoins as reliable digital exchange bridges.
- Compliance preparation advised for stablecoin issuers aspiring to be ‘MAS regulated stablecoins’.
The Monetary Authority of Singapore (MAS), the nation’s financial watchdog and central bank, has introduced an innovative regulatory framework to categorize stablecoins—cryptocurrencies pegged to legal tender—under certain criteria. This proactive approach aims to enhance transparency and stability in the rapidly evolving industry.
This move follows an extensive feedback collection process initiated in October of the previous year. The regulatory framework pertains to nonbank issuers of single-currency stablecoins linked to significant G10 currencies such as the Singapore dollar, the U.S. dollar, and the Japanese yen. The framework’s application comes into play when the circulation of these stablecoins exceeds 5 million Singapore dollars (equivalent to $3.68 million). Further public consultations on legislative modifications are slated for the coming year.
“When subject to effective regulation to maintain their value stability, stablecoins can act as a reliable medium of exchange, bolstering innovation such as the ‘on-chain’ buying and selling of digital assets,” the statement from the authority explained. On-chain transactions denote transactions conducted within a blockchain network and recorded on a publicly accessible ledger.
The newly established regulations are strategically crafted to ensure a systematic resolution for unstable stablecoin initiatives, safeguarding full value restitution to investors.
Stablecoin issuers seeking recognition and the ‘MAS-regulated stablecoins’ label must adhere to all stipulations outlined in the framework before applying to MAS. Any falsification of this designation could lead to substantial financial penalties and legal consequences.
According to Ho Hern Shin, Deputy Managing Director of MAS, the stablecoin regulatory framework is aimed at fostering the credible adoption of stablecoins as a dependable digital medium of exchange and as a connecting link between the fiat and digital asset realms. Hern Shin encourages stablecoin issuers aspiring to have their stablecoins designated as “MAS regulated stablecoins” to proactively prepare for compliance in advance.
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