Singapore central bank has unveiled guidelines for stablecoins

By: Dickson Arinze

August 15, 2023 7:33 AM

The framework defines the conditions that stablecoin issuers must achieve in order to be considered regulated by the Singapore Monetary Authority.

A new regulatory framework for single-currency stablecoins (SCS) in Singapore has been published by the country's central bank.

On August 15th, the Monetary Authority of Singapore unveiled→ a framework for non-bank issued stablecoins with a circulation of more than $3.7 million (5 million Singapore dollars) that are tied to the value of Singapore dollars or G10 currencies like the EUR, GBP, and the US dollar.

According to Ho Hern Shin, the bank's deputy managing director of financial supervision, the framework will make stablecoins more usable "as a credible digital instrument of exchange and as a bridge that links fiat and digital asset ecosystems."

Regulatory framework excerpt relating to stablecoins. Origin: MAS

If stablecoin issuers wanted their tokens to be identified as MAS-regulated, Shin urged them to take the necessary steps toward compliance.

Redemption schedules, disclosures, reserve management, and capital requirements are just some of the items covered by the framework for stablecoin issuers, as reported by MAS.

To distinguish themselves from unregulated stablecoins, MAS highlighted that only stablecoin issuers meeting the new framework's requirements can apply to become MAS-regulated.

It warned that the new framework includes consequences such as fines and jail time for individuals who falsely portray a token as being MAS-certified. 

After hearing from the general public in October of 2022, the regulatory framework was updated to reflect their input. The MAS will have to conduct consultations, and lawmakers will have to enact revisions to put the framework into effect.