Singapore, which considers cryptocurrencies like Bitcoin (BTC) unsuitable and risky for retail investors, takes a tough stance towards crypto.
At this point, Singapore, which plans to introduce new rules for crypto, continues to work to reduce crypto trading risks for its investors and to support stablecoins.
At this point, the Monetary Authority of Singapore (MAS) said in a statement today that new rules for stablecoins have been finalized.
It was stated that the new regulatory framework introduced for stablecoins aims to provide a high degree of stability of value for stablecoins regulated in the country.
MAS, which started a public consultation for stablecoins last October, said that the opinions of the public were also taken into account within this framework.
“The Singapore Monetary Authority today announced the features of a new regulatory framework aimed at providing a high degree of stability of value for stablecoins issued in Singapore.
Stablecoins are digital payment tokens designed to maintain a stable value against one or more specific fiat currencies.
At this point, stablecoins only maintain stability of value when well regulated and can serve as a reliable medium of exchange to support innovation, including on-chain trading of digital assets.
MAS' stablecoin regulatory framework will apply to single-currency stablecoins (SCS) pegged to Singapore Dollars or any G10 currency issued in Singapore.”
Stating that stablecoins should have basic features such as value stability, capital equivalent redemption ability and explanatory power, MAS stated that those who issue stablecoins with these features can apply to MAS for registration.