Singapore Cracks Down on Stablecoin Risks with New Regulatory Framework
Singapore's Monetary Authority (MAS) has proposed new rules for stablecoins, aiming to increase transparency and investor protection. The MAS is consulting on legislative amendments to introduce a regulatory framework for stablecoins under the Payment Services Act.
The proposed rules center on reserve assets and stability, redemption, disclosures, and protections for holders of regulated stablecoins. Key requirements include ensuring that issuers have suitable reserve assets, meet capital and solvency standards, and provide mechanisms for redeeming stablecoins at intended rates.
MAS is also seeking feedback on stablecoins issued across borders, foreign-issued stablecoins, and interest payments to holders. The authority wants to ensure that users are informed about transactions involving regulated stablecoins, with issuers required to disclose arrangements used and provide mechanisms for redemption.