- The central bank's framework will apply to single-currency stablecoins pegged to the Singaporean dollar or any G10 currency.
- Issuers of such stablecoins seeking regulation in Singapore must meet certain requirements related to value stability, capital and redemption capitals.
The Monetary Authority of Singapore (MAS) has unveiled its framework for regulating stablecoins following a public consultation in October last year.
The central bank's framework will apply to single-currency stablecoins pegged to the Singaporean dollar or any G10 currency, which would include the U.S. dollar, the euro and the British pound among others.
Issuers of such stablecoins seeking regulation in Singapore must meet certain requirements related to value stability, capital and redemption capitals, the MAS outlined in an announcement on Tuesday.
Stablecoins, for example, must hold minimum base capital 1 million Singapore dollars ($740,000) and provide redemption within no more than five business days of a request.
The Singapore affiliate of stablecoin issuer Circle obtained a license for digital payment token services from the MAS in June.
Multiple jurisdictions have or are in the process of establishing regulatory frameworks for stablecoins. In the U.S., a bill for such a framework is currently making its way through Congress.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.