Singapore rolls out new regulatory framework for stablecoins
finextra.comThe new rulebook will apply to single-currency stablecoins (SCS) pegged to the Singapore Dollar or any G10 currency, that are issued in Singapore. Issuers of such SCS will have to fulfil key requirements relating to value stability - including information relating to their composition, valuation, custody and audit - new capital requirements and redemption and disclosure rules.The new rules have been designed to ensure an orderly wind-down of failing stablecoins schemes and full value returns to investors.Only stablecoin issuers that fulfil all requirements under the framework can apply to MAS for their stablecoins to be recognised and labelled as 'MAS-regulated stablecoins'.
Misrepresentation of the label could result in financial penalties and imprisonment for miscreants. Ho Hern Shin, deputy managing director, MAS, says: “MAS’ stablecoin 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.
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