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  The framework outlines requirements for stablecoin issuers to meet to be deemed as regulated by the Monetary Authority of Singapore. 
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<div class="cointelegraph"> 
 <p>Singapore's <a rel="noopener noreferrer nofollow" title="central" href="https://thebittimes.com/tag/central.html">central</a> bank has released a revised <a rel="noopener noreferrer nofollow" title="regulatory" href="https://thebittimes.com/tag/regulatory.html">regulatory</a> <a rel="noopener noreferrer nofollow" title="framework" href="https://thebittimes.com/tag/framework.html">framework</a> aimed at ensuring stability for single-currency <a rel="noopener noreferrer nofollow" title="stablecoins" href="https://thebittimes.com/tag/stablecoins.html">stablecoins</a> regulated in the city-state.</p> 
 <p>The Monetary Authority of Singapore announced the framework on Aug. 15 and said it will police single-currency stablecoins (SCS) pegged to the value of the Singapore dollar or G10 currencies such as the euro, British pound and United States dollar.</p> 
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  <img src="https://s3.cointelegraph.com/uploads/2023-08/da3f8910-66ef-4cec-988a-6e560b7a7812.PNG" alt="" title=""> 
  <figcaption style="text-align: center;"> <em>Excerpt from statement regarding its stablecoin regulatory framework. Source: MAS</em> 
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 <p>“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," said the bank's deputy managing director of financial supervision Ho Hern Shin.</p> 
 <p>"We encourage SCS issuers who would like their <a rel="noopener noreferrer nofollow" title="stablecoins" href="https://thebittimes.com/tag/stablecoins.html">stablecoins</a> recognized as 'MAS regulated <a rel="noopener noreferrer nofollow" title="stablecoins" href="https://thebittimes.com/tag/stablecoins.html">stablecoins</a>' to make early preparations for compliance,” Shin added.</p> 
 <p>The framework outlines several requirements that stablecoin issuers would have to adhere to, including timely redemptions and robust reserve management, among others:&nbsp;</p> 
 <ul> 
  <li>Value stability: Reserve assets will be subject to requirements relating to their composition, valuation, custody and audit, to give a high degree of assurance of value stability.</li> 
  <li>Capital: Stablecoin issuers must maintain minimum base capital and liquid assets to reduce the risk of insolvency and enable an orderly wind-down of business if necessary.</li> 
  <li>Redemption at Par: Issuers must return the par value of the stablecoins to holders within five business days from a redemption request.</li> 
  <li>Disclosure: Issuers must provide appropriate disclosures to users, including information on the SCS’ value stabilizing mechanism, rights of SCS holders, as well as the audit results of reserve assets.</li> 
 </ul> 
 <p>MAS noted only stablecoin issuers that fulfill the requirements under the framework will be able to apply to become MAS-regulated.</p> 
 <p>"This label will enable users to readily distinguish MAS-regulated stablecoins from other digital payment tokens, including 'stablecoins' which are not subject to MAS’ stablecoin regulatory framework," it said.</p> 
 <p>It also warns any person that represents a token as being MAS-ceritified would be subject to penalties set out in the new framework, along with being added to an alert list.&nbsp;</p> 
 <p>The revised regulatory framework accounts for feedback from an October 2022 public consultation.</p> 
 <p><strong><em>Asia Express: China’s risky Bitcoin court decision, is Huobi in trouble or not? </em></strong></p> 
 <p class="post-content__disclaimer">This is a developing story, and further information will be added as it becomes available. </p> 
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Singapore central bank releases regulatory framework for stablecoins

TheBitTimes

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