Singapore Cracks Down on Stablecoins with 100% Backing Rule
The Monetary Authority of Singapore (MAS) has proposed new rules for regulated stablecoins in the country. The MAS wants issuers to maintain a 100% backing ratio, meaning that all stablecoins must be fully backed by reserves. Additionally, interest-bearing stablecoins are now banned under these new regulations.
Under the new licensing framework, compliant stablecoin issuers will have a clearer role in digital finance. Non-compliant issuers will still fall under the Digital Payment Token (DPT) framework. This move aims to protect users and ensure stability in the market.
The MAS has emphasized the importance of user protection and stability in the financial system. The new rules are designed to promote a safe and secure environment for digital payments.