The Singapore central bank has officially unveiled a brand new regulatory framework for stablecoins in the country. Specifically, the Monetary Authority of Singapore (MAS) released the framework after executing a public consultation in the fall of last year.
The instituted framework will only apply to single-currency stablecoins that are pegged to a Singapore dollar. Moreover, there have been certain requirements set in place for issuers of stablecoins that are seeking regulation in the country.
Singapore Central Bank Reveals Stablecoin Regulatory Framework
The digital asset industry has long seen a potential game changer in the presence of stablecoins. Subsequently, with the arrival of PayPal’s PYUSD stablecoin, there is immense interest in its advancement. Now, one country has introduced a new framework to guide the market’s continued growth.
Specifically, the Singapore Central Bank has unveiled a regulatory framework for stablecoins in the country. Indeed, the developments follow a public consultation held in October of last year and provide a clear roadmap for companies seeking regulatory standing with their stablecoins.
The framework applies to a single-currency stablecoin pegged to a Singaporean dollar or G10 currency. Therefore, this applies to any US dollar-pegged, or British pound-pegged digital asset. Moreover, the central bank introduced requirements regarding value, capital, and redemption, according to a MAS announcement issued Tuesday.
An example of these requirements is that stablecoins must hold a minimum base capital of 1 million Singaporean dollars. Additionally, redemption of the asset must take no longer than five business days to process.
Alternately, Circle obtained a digital payment token services license from the MAS this June. Moreover, this development shows their commitment to the industry and the continued presence of stablecoins in the country. A process that is similarly taking place throughout the world.