Singapore’s Regulatory Framework for Stablecoins Finalized

The Monetary Authority of Singapore (MAS) today announced that it has finalized the details for its regulatory framework for stablecoins.

The regulatory framework, which follows a rigorous review process involving feedback from a public consultation in October 2022, focuses on ensuring high levels of value stability for single-currency stablecoins (SCS) pegged to the Singapore Dollar or any G10 currency. This strategic move underscores Singapore’s commitment to embracing financial innovation while safeguarding the interests of both users and the broader economy.

Key features of the MAS stablecoin regulatory framework include:

In summary, the new framework will introduce a number of requirements for stablecoins including:

• Strict requirements for the custody and audit of reserve assets.
• Capital requirements and the maintenance of adequate liquid assets.
• Issuers are also required to fulfill any redemption requests within five business days.

MAS is set to introduce the designation of “MAS-regulated stablecoins” exclusively for stablecoin issuers that satisfy all requirements outlined in the framework. This will allow users to distinguish compliant stablecoins from other digital payment tokens, offering a clear demarcation within the market.

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In emphasizing the significance of this framework, Ms. Ho Hern Shin, Deputy Managing Director (Financial Supervision) at MAS, stated, “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. We encourage SCS issuers who would like their stablecoins recognized as ‘MAS regulated stablecoins’ to make early preparations for compliance.”