MAS Seeks Feedback on Stablecoin Regulation Framework
The Monetary Authority of Singapore (MAS) has issued a consultation paper seeking feedback on proposed legislative changes to regulate stablecoins in Singapore. The MAS Single-Currency Stablecoin framework would determine which issuers can be regulated by the authority, and the safeguards they must meet to protect users and keep the value of their tokens stable.
The proposed legislation would only allow issuers licensed by the regulator to describe themselves as “MAS-regulated stablecoins”. This would help users distinguish well-regulated stablecoins from other cryptocurrencies that claim to be “stablecoins” but are not subject to MAS regulation. Stablecoins not regulated by MAS will be treated as digital payment tokens (DPTs) and be subject to consumer protection safeguards.
The proposed changes include requirements for issuers to ensure their stablecoins retain their value, maintain sufficient capital, allow users to redeem the tokens at their original value, and provide relevant disclosure to users. The authority is also seeking feedback on policy positions in further areas related to stablecoin regulation, including multi-jurisdictional issuance of stablecoins and recognition of foreign-issued stablecoins.