The Singapore central bank released a new regulatory framework for stablecoins, which could introduce a new chapter for crypto adoption in the country.
Singapore has taken a step ahead for crypto adoption and regulation through its latest announcement. Its central bank, the Monetary Authority of Singapore (MAS), has led the development. The Singapore central bank has finally released a revised regulatory framework for stablecoins.
Stablecoin issuers in the country can now expect to receive more clarity during their operations. The regulations cover all stablecoins that banks do not issue. Further, the stablecoins must be backed by the Singapore Dollar or G10 currencies.
The Deputy Managing Director of MAS said, “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.”
The central bank mentioned four chief requirements for stablecoin issuers hereon. The first included the valuation and stability of the stablecoins. The second factor described the minimum capital requirements for stablecoin issuers.
The third was clarity regarding the redemption period when holders liquidated their assets. The fourth aspect mentioned all essential disclosure items of the stablecoin issuer.
Stablecoin issuers that followed all the guidelines could only apply to the MAS. Earlier this year, the MAS also published a white paper on digital money. Several such initiatives have garnered a crypto-friendly image of the authority.