Singapore central bank releases regulatory framework for stablecoins

Singapore's cardinal slope has released a revised regulatory model aimed astatine ensuring stableness for single-currency stablecoins (SCS) regulated successful the city-state.

The Monetary Authority of Singapore announced the model connected Aug. 15, which is aimed astatine non-bank issued stablecoins pegged to the worth of the Singapore dollar oregon G10 currencies specified arsenic the euro, British lb and United States dollar and whose circulation exceeds 5 cardinal Singapore dollars ($3.7 million).

The bank’s fiscal supervision lawman managing director, Ho Hern Shin, said the model aims to facilitate stablecoin usage “as a credible integer mean of speech and arsenic a span betwixt the fiat and integer plus ecosystems.”

@MAS_sg has announced the features of a caller regulatory model that seeks to guarantee a precocious grade of worth stableness for #stablecoins regulated successful #Singapore. https://t.co/j12QambGIJ pic.twitter.com/LBUoOGY16P

Shin encouraged stablecoin issuers to hole for compliance if they wanted their stablecoin to beryllium labeled arsenic MAS-regulated.

The model outlines respective requirements for stablecoin issuers including redemption timelines, disclosures, reserve absorption and superior requirements, per MAS:

• Value stability: Reserve assets volition beryllium taxable to requirements relating to their composition, valuation, custody and audit, to springiness a precocious grade of assurance of worth stability.
• Capital: Stablecoin issuers indispensable support minimum basal superior and liquid assets to trim the hazard of insolvency and alteration an orderly wind-down of concern if necessary.
• Redemption astatine Par: Issuers indispensable instrumentality the par worth of the stablecoins to holders wrong 5 concern days from a redemption request.
• Disclosure: Issuers indispensable supply due disclosures to users, including accusation connected the SCS’ worth stabilizing mechanism, rights of SCS holders, arsenic good arsenic the audit results of reserve assets.

MAS noted lone stablecoin issuers that fulfill the caller framework’s requirements tin use to go MAS-regulated — a statement the cardinal banks says ensures they tin beryllium distinguished from non-regulated stablecoins by users.

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It warned those who correspond a token arsenic being MAS-certified would beryllium taxable to penalties acceptable retired successful the caller model which see fines and imprisonme on with being added to an alert list. 

The revised regulatory model accounts for feedback from an October 2022 nationalist consultation. MAS volition request to clasp consultations and parliament indispensable walk amendments that would enforce the framework.

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