Today the Monetary Authority of Singapore (MAS) published its stablecoin regulatory framework following a consultation it ran last year. The rules apply to single currency stablecoins issued in Singapore in the Singapore dollar or any of the G10 currencies and that have a value of more than S$5 million.
The framework has the caveats one would expect regarding stablecoin reserve management, monthly third party attestations, the capital of the issuer, stablecoin redemption, and disclosures. A few highlights are worth noting.
The regulator will allow compliant stablecoins to use the “MAS-regulated stablecoin” label, but this will only apply to tokens that are issued only in Singapore. Foreign-issued stablecoins will continue to be allowed to be used in Singapore subject to the Digital Payment Token (DPT) legislation. Stablecoins in non-G10 currencies can also be issued within Singapore outside of the framework. One of the reasons they are not initially included is that it’s tricky to ensure these currencies have sufficiently liquid backing assets.
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