Key points
- The Monetary Authority of Singapore, in conjunction with the Central Bank of Singapore, has released a new regulatory framework for stablecoins.
- The new framework requires stablecoin issuers to be regulated by the Monetary Authority of Singapore for their assets to be used there.
The Central Bank of Singapore has introduced a new crypto regulatory framework targeting the stablecoin industry. The new framework requires stablecoin issuers to register with the MAS.
Central Bank of Singapore continues to increase oversight of crypto regulation
The Central Bank of Singapore released a revised regulatory framework that aims at ensuring stability for single-currency stablecoins (SCS) regulated in the state.
The MAS announced the new framework on August 15, which aims at streamlining the use of the Singaporean dollar or the G10 pegged currencies like Euro, USD and the British pound. The target assets should also have exceeded 5 million Singaporean dollars in circulation ($3.7 million).
Central Bank of Singapore supervision deputy managing director Ho Hern Shin, said the framework is set to facilitate stablecoin use as a “credible digital medium of exchange” and as a “bridge” between fiat and digital assets. Shin encouraged stablecoin issuers to be ready to comply with the new regulatory framework if they wanted to be branded as MAS-regulated entities.
The MAS has been proactive in regulating and adopting crypto assets for a long time. It recently pulled joint efforts with the UK FCA and has also committed $150 million in fintech markets, aiming to welcome more users in Web 3. While the new stablecoin framework has already been announced, the MAS needs to have the parliament pass it into law to enforce it.
Keep watching Fintech Express for updates on regulations and other fintech-related developments.