The Monetary Authority of Singapore (MAS) has published a consultation about its implementation of the Basel banking rules relating to crypto-assets. Most of its consultation questions are around stablecoins, which is unsurprising as several major stablecoin issuers have Singapore licenses, including Circle. It’s also the home to the Paxos Global Dollar stablecoin.
On the face of it, the Singapore proposals appear to take a more positive view of permissionless blockchains than the Basel Committee, which currently treats them as high risk. The fact that Singapore is consulting regarding stablecoins, implies the high risk classification might be relaxed. More on that later.
The specific consultation questions were entirely around stablecoins. MAS proposes qualifying reserves as including low risk securities issued by governments or multilateral bodies (like the World Bank), central bank reserves, bank deposits or reverse repo. It goes into some details about the ratings of the securities and asks for feedback.
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