Following last year’s stablecoin implosion, international leaders have emphasized the importance of setting up global regulations and norms for this sector. Despite such calls, only a few have taken concrete steps to enact these measures.
In contrast, Singapore’s central bank has taken a proactive approach by introducing a structured framework, outlining various prerequisites, aiming to bring transparency to stablecoin issuers and their operations.
The Monetary Authority of Singapore (MAS) announced features of a new regulatory framework to ensure a high degree of value stability for stablecoins regulated in the city-state.
The regulatory framework has been shaped by incorporating input received during the October 2022 public consultation and will be relevant to single-currency stablecoins (SCS) pegged to the Singapore Dollar or any other G10 currency issued within Singapore.
As such, there are certain requirements that the SCS needs to comply with.
Stablecoins that meet all the criteria will be labeled as MAS-regulated ones, thereby setting them apart from the ones that lack oversight.
With the latest move, Singapore is among the world’s first jurisdictions to have adopted regulatory measures for stablecoins. Commenting on the development, MAS’s Deputy Managing Director (Financial Supervision) Ho Hern Shin said,
“MAS’ stablecoin regulatory framework aims to facilitate the use of stablecoins as a credible digital medium of exchange, and as a bridge between the fiat and digital asset ecosystems. We encourage SCS issuers who would like their stablecoins recognized as ‘MAS regulated stablecoins’ to make early preparations for compliance.”
Singapore is slowly establishing itself as a hub for digital currencies. To that extent, the regulators in the region are actively seeking to attract international companies, especially in light of critiques from the crypto sector regarding the regulatory framework in the US.
Several crypto platforms, such as Blockchain.com, Crypto.com, Gemini, Circle, Paxos, and Ripple, have secured authorization in Singapore over the past several months.
The post Singapore’s Central Bank Unveils Stablecoin Regulation as Global Trailblazer appeared first on CryptoPotato.
Following last year’s stablecoin implosion, international leaders have emphasized the importance of setting up global regulations and norms for this sector. Despite such calls, only a few have taken concrete steps to enact these measures.
In contrast, Singapore’s central bank has taken a proactive approach by introducing a structured framework, outlining various prerequisites, aiming to bring transparency to stablecoin issuers and their operations.
The Monetary Authority of Singapore (MAS) announced features of a new regulatory framework to ensure a high degree of value stability for stablecoins regulated in the city-state.
The regulatory framework has been shaped by incorporating input received during the October 2022 public consultation and will be relevant to single-currency stablecoins (SCS) pegged to the Singapore Dollar or any other G10 currency issued within Singapore.
As such, there are certain requirements that the SCS needs to comply with.
Stablecoins that meet all the criteria will be labeled as MAS-regulated ones, thereby setting them apart from the ones that lack oversight.
With the latest move, Singapore is among the world’s first jurisdictions to have adopted regulatory measures for stablecoins. Commenting on the development, MAS’s Deputy Managing Director (Financial Supervision) Ho Hern Shin said,
“MAS’ stablecoin regulatory framework aims to facilitate the use of stablecoins as a credible digital medium of exchange, and as a bridge between the fiat and digital asset ecosystems. We encourage SCS issuers who would like their stablecoins recognized as ‘MAS regulated stablecoins’ to make early preparations for compliance.”
Singapore is slowly establishing itself as a hub for digital currencies. To that extent, the regulators in the region are actively seeking to attract international companies, especially in light of critiques from the crypto sector regarding the regulatory framework in the US.
Several crypto platforms, such as Blockchain.com, Crypto.com, Gemini, Circle, Paxos, and Ripple, have secured authorization in Singapore over the past several months.
The post Singapore’s Central Bank Unveils Stablecoin Regulation as Global Trailblazer appeared first on CryptoPotato.