Odaily Planet Daily News The Monetary Authority of Singapore (MAS) stated on its official website that it has finalized the stablecoin regulatory framework. The regulatory framework takes into account feedback received following a public consultation in October 2022.
When well regulated to maintain value stability, stablecoins can serve as a trusted medium of exchange to support innovation, including "on-chain" buying and selling of digital assets, MAS said.
MAS’ stablecoin regulatory framework will apply to single currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency. Issuers of such SCSs must meet the following key requirements:
1. Value stability: SCS reserve assets will be subject to its composition, valuation, custody and audit requirements to ensure a high degree of value stability;
2. Capital: Issuers must maintain minimum underlying capital and liquid assets to reduce the risk of insolvency and, if necessary, to wind down business in an orderly manner;
3. Redemption at face value: the issuer must return the face value of the SCS to the holder within five working days of the redemption request;
4. Disclosure: Issuers must provide users with appropriate disclosures, including information on SCS value stabilization mechanisms, SCS holders' rights, and audit results of reserve assets.
Only stablecoin issuers that meet all the requirements under this framework can apply to MAS for their stablecoins to be recognized and labeled as "MAS-regulated stablecoins". The label will allow users to easily distinguish MAS-regulated stablecoins from other digital payment tokens. Anyone who misrepresents a token as a “MAS-regulated stablecoin” may be penalized under MAS’ stablecoin regulatory framework and placed on MAS’ investor alert list. If users choose to trade stablecoins that are not regulated by the MAS framework, they should make an informed decision about the accompanying risks.
Bitcoinist