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News

Stablecoin Issuers In Singapore Take Positive Action Under New Regulations

August 18, 2023 - Around 2 mins mins to read

Key Points:

  • Stablecoin issuers in Singapore, including Circle, StraitsX, and DCS Card Center, are exploring the possibilities under the recently finalized stablecoin framework by the Monetary Authority of Singapore.
  • The MAS mandates strong asset backing, quick refunds, and clear disclosures in stablecoin operations.
  • Singapore leads in stablecoin regulation, as global peers like the EU, UK, and Hong Kong plan similar moves.
Circle, StraitsX, and DCS Card Center, major stablecoin issuers, are actively exploring the potential of Singapore’s newly solidified stablecoin framework. Both Circle and StraitsX have secured MPI licenses, while DCS operates under the jurisdiction of the Banking Act, The Straits Times reported.
Stablecoin Issuers In Singapore Take Positive Action Under New Regulations
Stablecoin Issuers In Singapore Take Positive Action Under New Regulations 2

In response to the Monetary Authority of Singapore‘s recent announcement of finalized regulations for Singapore-licensed stablecoin providers, numerous national digital asset and payment companies are now contemplating the issuance of stablecoins or the formal registration of their tokens under regulatory oversight.

This move comes as MAS solidifies its position as one of the pioneering global jurisdictions to establish comprehensive rules for stablecoins, a class of digital currencies designed to maintain a consistent value via traditional fiat currencies.

Many of these tokens purport to be backed by tangible assets like cash or government bonds.

Accordingly, reserves supporting stablecoins must be composed of low-risk, highly liquid assets consistently equivalent to or surpassing the circulating stablecoin’s value.

Stablecoin issuers must refund holders the digital currency’s par value within five business days of redemption requests. According to the framework, issuers must offer relevant user disclosures, including reserve audit outcomes.

Anticipated to follow suit, the European Union, the United Kingdom, and Hong Kong are set to implement their own stablecoin and digital asset regulations in the upcoming year.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Circle

DCS Card Center

MAS

Monetary Authority of Singapore

singapore

Stablecoin

StraitsX

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Stablecoin Issuers In Singapore Take Positive Action Under New Regulations

Key Points:

  • Stablecoin issuers in Singapore, including Circle, StraitsX, and DCS Card Center, are exploring the possibilities under the recently finalized stablecoin framework by the Monetary Authority of Singapore.
  • The MAS mandates strong asset backing, quick refunds, and clear disclosures in stablecoin operations.
  • Singapore leads in stablecoin regulation, as global peers like the EU, UK, and Hong Kong plan similar moves.
Circle, StraitsX, and DCS Card Center, major stablecoin issuers, are actively exploring the potential of Singapore’s newly solidified stablecoin framework. Both Circle and StraitsX have secured MPI licenses, while DCS operates under the jurisdiction of the Banking Act, The Straits Times reported.
Stablecoin Issuers In Singapore Take Positive Action Under New Regulations
Stablecoin Issuers In Singapore Take Positive Action Under New Regulations 4

In response to the Monetary Authority of Singapore‘s recent announcement of finalized regulations for Singapore-licensed stablecoin providers, numerous national digital asset and payment companies are now contemplating the issuance of stablecoins or the formal registration of their tokens under regulatory oversight.

This move comes as MAS solidifies its position as one of the pioneering global jurisdictions to establish comprehensive rules for stablecoins, a class of digital currencies designed to maintain a consistent value via traditional fiat currencies.

Many of these tokens purport to be backed by tangible assets like cash or government bonds.

Accordingly, reserves supporting stablecoins must be composed of low-risk, highly liquid assets consistently equivalent to or surpassing the circulating stablecoin’s value.

Stablecoin issuers must refund holders the digital currency’s par value within five business days of redemption requests. According to the framework, issuers must offer relevant user disclosures, including reserve audit outcomes.

Anticipated to follow suit, the European Union, the United Kingdom, and Hong Kong are set to implement their own stablecoin and digital asset regulations in the upcoming year.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.