MAS to regulate stablecoins for ‘value stability’ in new framework

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The Monetary Authority of Singapore, the city-state’s central bank, has finalized a framework for stablecoins seeking to carry the “MAS-regulated” label.

Issuers need to meet a minimum base capital and several prerequisites, including the stability of the tokens’ value. Companies must also return the par value of the holder’s stablecoin within five business days, if requested by a customer.

The regulatory framework will apply to single-currency stablecoins that are issued in Singapore and pegged to the Singapore dollar or any G10 currency.

The move is part of a broader effort by MAS to regulate cryptocurrency. The central bank also released a whitepaper on purpose-bound money in June.

MAS has been generally welcoming to crypto players looking to gain ground in the city-state. Over the last few months, the agency has given out licenses to companies like Crypto.com and MetaComp.

Circle Internet Financial, the issuer of stablecoin USD Coin, secured a major payment institution license from MAS in around two months ago. The greenlight allows Circle Singapore to provide digital payment token services, among other offerings.

See also: Singapore stablecoins to gain market share as ‘last-mile’ settlement product