Singapore's MAS Sets Stringent Requirements for Stablecoin Issuers

The Monetary Authority of Singapore (MAS) has released a set of significant requirements for entities looking to issue stablecoins within the country's regulatory framework. These requirements are designed to ensure consumer protection, financial stability, and adherence to anti-money laundering (AML) and counter-terrorism financing (CTF) measures.

The MAS mandates that stablecoin issuers meet stringent criteria, including obtaining a license and adhering to technology risk management standards. The regulator emphasizes the need for transparent and comprehensive disclosure of the stablecoin's mechanics and risks to users. Additionally, issuers must have a clear and robust governance structure in place, with key personnel demonstrating a solid understanding of the business and technology aspects.

Stablecoins pegged to Singapore's national currency, the SGD, must maintain a 1:1 reserve of the currency. Audits to verify the reserve's accuracy are also required. The regulatory framework aims to foster innovation in the payments sector while safeguarding financial stability. Existing major payment institutions will be given a grace period to comply with the new rules.

Companies aiming to issue stablecoins in Singapore, such as Example Stablecoin Company, need to ensure they fulfill the MAS stipulations. These new guidelines signal Singapore's commitment to staying at the forefront of fintech innovation while maintaining a secure and well-regulated financial ecosystem.