Singapore introduces visionary regulatory framework to boost stablecoins’ stability

August 15, 2023 06:02 PM AEST | By Invezz

Singapore introduces visionary regulatory framework to boost stablecoins’ stability — Image source: Invezz

Introducing MAS-regulated stablecoins

Singapore’s central bank introduces MAS-regulated stablecoins to enforce stability in digital finance. However, the Monetary Authority of Singapore has to hold legislative talks before the Parliament authorizes the new rules.

Single-currency stablecoins are digital tokens pegged to traditional assets such as state currencies. Singapore has only one stablecoin at the moment. MAS trusts stablecoins can support innovation as a medium of exchange when well-monitored to ensure value stability.

Crypto regulation in Singapore

As the cryptocurrency market expands, governments appear interested in monitoring the space to ensure legit businesses. Moreover, analysts forecast massive growth for the stablecoin industry by 2030.

Therefore, leading economics are looking to regulate stablecoins. Singapore has been upbeat as far as crypto regulation is concerned, attracting different players. For instance, the IMF and JPMorgan have participated in setting crypto standards for the country.

MAS requires firms creating stablecoins to adhere to given rules. The regulations involve ensuring stablecoin stability, transparent disclosure, efficient redemption, and capital adequacy.

Industry impact

Singapore reinforces its status as a financial hub, attracting startups that want to build on stablecoin modernizations. The country granted USD Coin issuer Circle a Major Payment Institution certificate to offer cross-border and domestic financial services (read more).

The MAS regulatory framework presents a clear path for stablecoin enthusiasts as it lays the ground for massive standards, booting investor confidence. Moreover, the new model offers venture capitalists a well-lit roadmap as far as regulation is concerned.

Singapore-regulated stablecoins match the risk management strategies of financial institutions, creating a lucrative environment for digital finance.

The post Singapore introduces visionary regulatory framework to boost stablecoins’ stability appeared first on Invezz.

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