TechFlow news: The Monetary Authority of Singapore (MAS) announced on its official website that it has finalized its regulatory framework for stablecoins. This framework incorporates feedback received during the public consultation in October 2022.
MAS stated that stablecoins are designed to maintain a stable exchange rate with one or more fiat currencies and can support innovation, including transactions on blockchains. The new framework applies to single-currency stablecoins pegged to the Singapore dollar or any G10 currency.
Issuers must meet key requirements regarding value stability, capital adequacy, redemption at par value, disclosure, and other aspects.
Only stablecoins meeting all requirements will be eligible to apply for recognition by MAS and carry the "MAS-regulated stablecoin" label. This measure enables users to identify regulated stablecoins.
Falsely marketing stablecoins may lead to penalties. MAS advises that users should carefully assess the risks if choosing to transact in non-regulated stablecoins.
