- The MAS has put the draft rulebook out for public consultation in 2022.
- The new requirements for issuers of stablecoins aim to minimize risk and increase transparency, the agency stressed.
The Monetary Authority of Singapore (MAS) has published a regulatory framework for the stablecoin sector. The regulator said it had taken into account the wishes expressed during the 2022 comment collection process when creating it.
According to the agency’s statement, MAS considers stablecoins to be “single-currency” tokens pegged to the Singapore dollar or other monetary unit of G10 member countries.
Issuers of such assets will be subject to certain requirements:
- Audit of reserves, including an assessment of the structure, custody, use and reconciliation methods;
- Minimum corporate capital and liquid assets;
- Redemption of steiblecoins at par within five business days;
- Disclosure of information, including details of holders’ rights and reserves.
Only companies that fully meet the above requirements can apply for MAS registration. Whether the regulator will impose penalties on those issuers that have not obtained a license is not yet known.
The central bank’s statement, however, indicated that attempting to fake official status will result in a fine.
The MAS has put the draft regulatory framework for the sector out for public consultation in October 2022. In April 2023, it was reported that the regulator was developing uniform rules for banks to deal with cryptocurrency companies.
The regulator is developing uniform rules for banks to deal with cryptocurrency companies.