Singapore Leads the Way:
Among First to Approve Stablecoin Crypto Regulations. Singapore is one of the first countries in the world to regulate stablecoins, which are a type of digital currency that aims to maintain a stable value against a fiat currency, such as the US dollar or the Singapore dollar. Stablecoin are often used for trading other cryptocurrencies, […]
-
by mike
Share on:
Among First to Approve Stablecoin Crypto Regulations.
Singapore is one of the first countries in the world to regulate stablecoins, which are a type of digital currency that aims to maintain a stable value against a fiat currency, such as the US dollar or the Singapore dollar. Stablecoin are often used for trading other cryptocurrencies, remittances, and payments. However, they also pose risks such as money laundering, fraud, and market manipulation.
Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), has issued a new framework for stablecoin regulation that sets out some key requirements for stablecoin issuers. These include:
- Holding reserves that back stablecoins in low-risk and highly-liquid assets, such as cash or government bonds. The reserves must equal or exceed the value of the stablecoin in circulation at all times.
- Returning the par value of the stablecoins to users within five business days of a redemption request.
- Providing appropriate disclosures to users, such as the audit results of reserves, the risks involved, and the terms and conditions of use.
- Having a minimum base capital of 1 million SGD or half of the issuer’s yearly operating expenses.
Stablecoins that meet these requirements will be recognized by the MAS as “MAS-regulated stablecoins” and will be distinguished from other unregulated tokens. The framework will apply to non-bank issuers of single-currency stablecoins tied to the Singapore dollar or any other G10 fiat currency if circulation exceeds 5 million SGD. The MAS plans to hold a public consultation on legislative amendments in 2024.
The MAS hopes that this framework will facilitate the use of stablecoins as a credible digital medium of exchange and as a bridge between the fiat and digital asset ecosystems. It also aims to protect consumers and investors from potential harms and ensure financial stability and integrity.
Singapore is not the only country that is looking into regulating stablecoins. Other jurisdictions, such as the US, the UK, and the EU, are also exploring ways to oversee this emerging sector. As stablecoins grow in popularity and influence, it is important to have clear and consistent rules that can foster innovation while mitigating risks.
Experienced Developer with a demonstrated history of working in the computer software industry.
SafeMoon Team in Hot Water: Arrested and Charged!
SafeMoon, a crypto company that has been accused of fraud and unregistered offering of crypto securities by the SEC and the DOJ. Authorities charged SafeMoon’s creator Kyle Nagy, CEO John Karony, and CTO Thomas Smith with conspiracy to commit securities fraud, wire fraud, and money laundering. The defendants allegedly promised investors that they had safely […]
Tedi Talks: Why Crypto-Coins and AI Matter Now
Tedi Ticic is a well-known name in the world of cryptocurrency. He blazed a trail in the field and received recognition for his contributions to the industry. In one of his recent articles, he discusses the importance of crypto-coins and AI in the modern era. Tedi Ticic is a cryptocurrency trader, author, and mentor from Croatia, Europe. […]
David Schwartz Talks Tokenization:
XRPL’s Exciting Future Unveiled. Ripple CTO David Schwartz recently shared his timeline for tokenization on the XRP Ledger (XRPL). David Schwartz anticipates real-world asset tokenization on XRP Ledger within the next year or year and a half. This statement was made in a video shared by the Flip The Chain team on Oct. 13, 2023. […]
Most read
