Singapore Issues Strict Stablecoin Rules Amid Global Regulatory Pressure
The Monetary Authority of Singapore (MAS) has proposed new rules for stablecoin issuers in the country, aiming to bring its framework into law. The proposal, which is open for public feedback until October 16, includes strict requirements for companies that want to issue MAS-regulated stablecoins.
Key among these are holding reserves worth at least 100% of every stablecoin in circulation and keeping those reserves in separate, custodian-held accounts. Issuers must also return money to holders within five business days if they ask to redeem and hold minimum capital of at least SGD 1 million or 50% of annual operating expenses, whichever is higher.
The proposal also introduces a new rule: issuers won't be allowed to pay interest to stablecoin holders. This is in line with similar restrictions seen in the EU and US, where stablecoins are treated as distinct from bank deposits.