The Monetary Authority of Singapore has established a regulatory framework for stablecoins, requiring issuers to meet criteria such as stability, minimum capital, and redemption at face value

ChainCatcher news, the Monetary Authority of Singapore (MAS) has published the document "MAS Finalizes Stablecoin Regulatory Framework." The MAS stablecoin regulatory framework will apply to single-currency stablecoins (SCS) issued in Singapore that are pegged to the Singapore dollar or any G10 currency. Issuers of such SCS must meet the following key requirements:

• Value Stability: SCS reserve assets will be subject to requirements regarding their composition, valuation, custody, and auditing to ensure high assurance of value stability.
• Capital: Issuers must maintain minimum base capital and liquid assets to reduce bankruptcy risk and orderly wind down operations when necessary.
• Redemption at Par: Issuers must return the par value of the SCS to holders within five working days of a redemption request.
• Disclosure: Issuers must provide appropriate disclosures to users, including information about the SCS value stabilization mechanism, rights of SCS holders, and the results of reserve asset audits.

Only stablecoin issuers that meet all the requirements under this framework can apply to MAS for their stablecoin to be recognized and labeled as "MAS-regulated stablecoin."