Singapore Introduces Tough Stablecoin Rules

The Monetary Authority of Singapore (MAS) has proposed new rules for stablecoin issuers in the country. The plan requires that all regulated stablecoins be backed by 100% reserves and prohibits the payment of interest on such coins. The proposal aims to provide a clearer regulatory framework for compliant stablecoins, while those that fail to meet the requirements will remain under the existing Digital Payment Token framework.

The MAS hopes that these new rules will give stablecoins a more defined role in digital finance. However, the specifics of how issuers will be monitored and regulated are still unclear.