Monetary Authority of Singapore Publishes G10-Linked Stablecoin Regulatory Framework

The MAS warned that defaulters would be penalized and placed on its investor alert list.

The Monetary Authority of Singapore (MAS) announced the regulatory framework for single-currency stablecoins (SCS) regulated in the Asian country, according to an Aug. 15 statement.

The financial watchdog said the rule would apply to single-currency stablecoins (SCS) pegged to the Singapore dollar (S$) or any G10 currency with more than S$5 million in circulation. Some of the G10 currencies include the euro, British pound and US dollar.

Ho Hern Shin, deputy general manager of MAS, said, “The regulatory framework aims to promote stablecoins as a trusted digital medium of exchange and a bridge between fiat currencies and the digital asset ecosystem.”

MAS further wrote:

"When well regulated to maintain this stability of value, stablecoins can serve as a trusted medium of exchange to support innovation, including the 'on-chain' purchase and sale of digital assets."

The new regulation comes after Circle announced that its subsidiary, Circle Singapore, has been granted a Major Payments Institution (MPI) license by the authorities. The license will enable the company to offer digital payment token services, cross-border remittance services and domestic remittance services.

Major Requirements for Registration

Under MAS regulations, stablecoin issuers must meet key requirements to be recognized in Singapore. These requirements include ensuring the stability of assets, capital, redeemability and providing appropriate disclosures.

MAS went on to say that only issuers whose stablecoins meet all the requirements under the framework can apply for their assets to be recognized and labeled as “MAS-regulated stablecoins”.

Shin urged SCS issuers to prepare for compliance early if they want their stablecoins to be regulated by MAS.

Meanwhile, the regulator has sternly warned that issuers who fail to comply but falsely claim their tokens are compliant will be penalized and placed on MAS’ investor alert list.