Singapore Monetary Authority, the de-facto central bank of the city-state, has unveiled an updated regulatory framework for stablecoins, with the primary goal of ensuring strong value stability for regulated stablecoins in Singapore.
The revised guidelines, made public on Tuesday, will be applicable to single-currency stablecoins (SCS) linked to the Singapore dollar or other G10 currencies. This includes currencies such as the euro, United States dollar, and British pound, as highlighted in the official announcement by the central bank.
Stablecoins are digital payment tokens (DPT) designed to maintain a constant value, effectively pegged to legal tender like national currencies, setting them apart from the notable volatility observed in cryptocurrencies like Bitcoin (BTC) or Ether (ETH).
The updated regulatory framework takes into account insights gathered from a public consultation held in October 2022 regarding the broader regulatory approach concerning stablecoin-related issuance and intermediation activities. The comprehensive response to the stablecoin consultation document conveys the Monetary Authority’s meticulous consideration of the feedback received. This documentation signifies the finalized regulatory stance of MAS regarding stablecoins within Singapore.
Additionally, the central bank emphasizes that exclusively those stablecoin issuers who meet all prerequisites outlined in the framework, including ensuring value stability and maintaining a minimum base capital, will be eligible to apply to MAS for the designation of “MAS-regulated stablecoins.”
Deputy Managing Director at MAS, Ho Hern Shin, has urged SCS issuers seeking recognition from the central bank to proactively prepare for compliance in order to attain acknowledgment.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.