REGULATION

Singapore's "Final Stablecoin Regulatory Framework" finalized, Monetary Authority of Singapore sets out four major conditions

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Singapore

In October last year, the Monetary Authority of Singapore (MAS) launched a public consultation on the regulatory framework for stablecoin-related activities. On August 15, MAS announced the final version of the stablecoin regulatory framework, incorporating feedback from the public.

MAS Stablecoin Regulatory Framework Finalized

MAS announced that this framework applies to the issuance of the Singapore dollar (SGD) in Singapore and any single-currency stablecoins (SCS) pegged to G10 currencies.

Note: G10 currencies typically refer to the most liquid major currencies from G10 member countries, including the United States, Canada, the United Kingdom, Eurozone countries, Japan, Australia, Sweden, Switzerland, Norway, and Denmark.

SCS issuers must meet the following requirements:

1. Value Stability

The structure, valuation, custody, and audit of SCS reserve assets must meet requirements to ensure high reliability in value stability.

2. Capital Requirements

Issuers' capital and liquid assets must be maintained above a minimum threshold to reduce bankruptcy risks and facilitate an orderly wind-down if necessary.

3. Redemption Capability at Par

Issuers must return the book value of SCS to holders within five working days upon redemption requests.

4. Disclosure of Information

Issuers must provide appropriate disclosures to users, including:

  • Audit results of reserve assets

  • Rights of SCS holders

  • Mechanisms for stabilizing SCS value

MAS Certification Label

SCS issuers meeting the four requirements can apply to MAS, and those approved will receive a "Regulated by MAS" label.

MAS aims to help users easily differentiate stablecoins regulated by MAS from those not under MAS oversight through this label.

Any issuers falsely claiming to be "MAS-regulated stablecoins" may be included in MAS's investor alert list and could face penalties, imprisonment, and other actions against individuals.