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Singapore Introduces Regulatory Framework for Stablecoins, Leading Global Adoption

CryptoSingapore Introduces Regulatory Framework for Stablecoins, Leading Global Adoption

Singapore’s financial regulator has introduced regulations for stablecoins, making it one of the early global adopters. Stablecoins maintain a fixed value against fiat currency, often claiming to be backed by real-world assets. This market is valued at about $125 billion, with Tether’s USDT and Circle’s USDC dominating. However, stablecoins are largely unregulated globally. The Monetary Authority of Singapore (MAS) now mandates that reserves behind stablecoins must be low-risk, exceeding their value, and issuers must return the digital currency’s par value within five business days of redemption. Stablecoins meeting these criteria will be recognized as “MAS-regulated stablecoins.” The framework aims to enhance transparency and clarity in the industry.

 

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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