MAS seeks feedback on proposals regulating value, user protection for stablecoins
Interested parties may submit their feedback by Oct 16
The Monetary Authority of Singapore (MAS) is currently seeking public feedback on proposed regulatory changes concerning stablecoins. These changes, outlined in a consultation paper issued on September 1, aim to establish a clear regulatory framework for stablecoins issued in Singapore. The proposed framework, known as the MAS Single-Currency Stablecoin framework, would only allow stablecoins licensed by the authority to carry the designation "MAS-regulated stablecoins."
This distinction will enable users to differentiate between well-regulated stablecoins and other cryptocurrencies that may not be subject to MAS regulation.
Stablecoins not regulated by MAS will be classified as digital payment tokens (DPTs) and will be subject to the same consumer protection safeguards that apply to DPTs. These safeguards include requirements for issuers to maintain stablecoin value, ensure sufficient capital reserves, enable users to redeem tokens at their original value, and provide relevant disclosure to users.
MAS is also seeking input on policy positions in additional areas related to stablecoin regulation, considering recent global developments and best practices. These areas include multi-jurisdictional issuance of stablecoins, recognition of foreign-issued stablecoins, additional measures to safeguard financial stability, and further consumer protection safeguards.
Interested parties have until October 16 to submit their feedback on the proposed legislative changes. The full consultation paper is available on the MAS website, and interested parties can submit their comments via the MAS website.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
