The Monetary Authority of Singapore (MAS) announced a regulatory framework for single-currency stablecoins (SCS) regulated in the Asian country, according to an Aug. 15 statement.
The financial regulator stated that the regulations would apply to single-currency stablecoins (SCS) pegged to the Singapore Dollar (S$) or any G10 currency whose circulation surpasses S$5 million. Some G10 currency includes the euro, the British pound, and the United States dollar.
Ho Hern Shin, the deputy managing director of MAS, said the “regulatory framework aims to facilitate the use of stablecoins as a credible digital medium of exchange and as a bridge between the fiat and digital asset ecosystems.”
The MAS further wrote that:
“When well-regulated to preserve such value stability, stablecoins can serve as a trusted medium of exchange to support innovation, including the ‘on-chain’ purchase and sale of digital assets.”
The new regulation is coming on the heels of Circle’s announcement that its subsidiary, Circle Singapore, received a Major Payment Institution (MPI) license from the authorities. The licensing would allow the company to offer digital payment token services, cross-border money transfer services, and domestic money transfer services.
Key requirements for registration
According to the MAS, stablecoin issuers must fulfill critical requirements to be recognized in the city-state. These requirements include assuring the asset’s stability, capital, redemptions capability, and provision of appropriate disclosure measures.
MAS continued that only issuers whose stablecoins fulfill all requirements under the framework can apply for their assets to be recognized and labeled as “MAS-regulated stablecoins.”
Shin urged SCS issuers to make early preparations for compliance if they want their stablecoins to be recognized as MAS-regulated.
Meanwhile, the regulator sternly warned that issuers who are non-compliant with the regulations but misrepresent their tokens as being regulatory compliant would be subject to penalties and placed on MAS’ Investor Alert List.
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