The Financial Authority of Singapore (MAS) introduced a regulatory framework for single-currency stablecoins (SCS) regulated within the Asian nation, based on an Aug. 15 assertion.
The monetary regulator said that the rules would apply to single-currency stablecoins (SCS) pegged to the Singapore Greenback (S$) or any G10 foreign money whose circulation surpasses S$5 million. Some G10 foreign money contains the euro, the British pound, and the US greenback.
Ho Hern Shin, the deputy managing director of MAS, stated the “regulatory framework goals to facilitate using stablecoins as a reputable digital medium of change and as a bridge between the fiat and digital asset ecosystems.”
The MAS additional wrote that:
“When well-regulated to protect such worth stability, stablecoins can function a trusted medium of change to help innovation, together with the ‘on-chain’ buy and sale of digital belongings.”
The brand new regulation is approaching the heels of Circle’s announcement that its subsidiary, Circle Singapore, acquired a Main Fee Establishment (MPI) license from the authorities. The licensing would enable the corporate to supply digital fee token providers, cross-border cash switch providers, and home cash switch providers.
Key necessities for registration
Based on the MAS, stablecoin issuers should fulfill crucial necessities to be acknowledged within the city-state. These necessities embrace assuring the asset’s stability, capital, redemptions functionality, and provision of acceptable disclosure measures.
MAS continued that solely issuers whose stablecoins fulfill all necessities beneath the framework can apply for his or her belongings to be acknowledged and labeled as “MAS-regulated stablecoins.”
Shin urged SCS issuers to make early preparations for compliance if they need their stablecoins to be acknowledged as MAS-regulated.
In the meantime, the regulator sternly warned that issuers who’re non-compliant with the rules however misrepresent their tokens as being regulatory compliant could be topic to penalties and positioned on MAS’ Investor Alert Listing.
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