According to the MAS, the framework's development was influenced by feedback collected subsequent to a public consultation held in October 2022.
The MAS believes that stablecoins, defined as digital payment tokens engineered to maintain a consistent value relative to one or more specific fiat currencies, have the potential, when properly regulated to maintain value stability, to function as reliable mediums of exchange. Such stability can support innovations such as the on-chain trading of digital assets.
MAS's regulatory approach applies to single-currency stablecoins (SCS) that are pegged to either the Singapore dollar or any G10 currency issued within Singapore. The regulatory requirements that SCS issuers are expected to meet encompass several key areas such as:
This label will help users easily differentiate MAS-regulated stablecoins from other digital payment tokens, including stablecoins that aren't subject to the MAS stablecoin regulatory framework. It's worth noting that falsely labeling a token as an 'MAS-regulated stablecoin' could result in penalties outlined within MAS's stablecoin regulatory framework, along with inclusion in MAS's Investor Alert List.
Individuals opting to engage with stablecoins not regulated under MAS's framework are advised to make informed choices considering the associated risks.
Officials from MAS highlighted that this stablecoin regulatory framework seeks to facilitate the adoption of stablecoins as a trustworthy digital medium of exchange and as a bridge between fiat and digital asset ecosystems. In this context, SCS issuers aspiring to have their stablecoins recognised as 'MAS regulated stablecoins' are advised to proactively prepare for compliance.
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