Kenne Michael 
The framework development relied on insights gained from a public consultation that commenced in October of the previous year. This consultation has informed the framework’s design adjustments to improve its effectiveness.
The regulatory scope of MAS (Monetary Authority of Singapore) will encompass single-currency stablecoins (SCS) linked to the Singapore Dollar or any G10 currency issued within Singapore. Entities issuing such stablecoins will need to adhere to specific vital criteria, which include:
- Value Stability: SCS reserve assets will be subject to stringent criteria regarding composition, valuation, custody, and auditing to ensure high-value stability and confidence.
- Capital Reserves: Issuers must maintain minimum base capital and liquid assets to mitigate insolvency risks and facilitate an orderly wind-down.
- Redemption at Par: Issuers must promptly return the par value to holders within five business days of a redemption request.
- Transparency: Issuers must provide comprehensive user disclosures covering the value-stabilizing mechanism, SCS holder rights, and audit outcomes for reserve assets.
Only stablecoin issuers that fulfill all the requirements stipulated by the framework will be eligible to seek recognition from MAS for their stablecoins under the designation of “MAS-regulated stablecoins.” This labeling differentiates between stablecoins within MAS’ regulatory framework and other digital payment tokens operating outside it.
Any attempt to inaccurately represent a token as a “MAS-regulated stablecoin” may result in penalties and inclusion on MAS’ Investor Alert List. Users are strongly advised to carefully evaluate the associated risks when engaging with stablecoins that operate beyond the scope of MAS’ regulatory framework.
Previously, the MAS had released a document outlining a proposed network framework that facilitates the open and interoperable exchange of digital assets.
