The Monetary Authority of Singapore (MAS) has released a regulatory framework for stablecoin providers operating within the country. The framework aims to protect investors and prevent insolvency risks associated with stablecoin issuance. Providers will be required to maintain a minimum capital base and other illiquid assets to reduce the risk of insolvency. They must also return the nominal value of stablecoins within five business days to holders who request redemption. Furthermore, providers will need to disclose mechanisms for maintaining pegs and minimizing volatility, as well as provide information on reserves, custody, and legal rights to investors and supervisory bodies.
The MAS’s stablecoin framework is intended to support the use of stablecoins as a credible digital medium of exchange and bridge between fiat and digital asset ecosystems. Ho Hern Shin, the deputy director-general for financial supervision of the MAS, emphasizes the importance of compliance and urges stablecoin issuers to adapt early to the regulations. The MAS also clarified that stablecoins falling outside the defined types in the framework will not be prohibited but will continue to be subject to the current Digital Payment Token regulatory regime.
In terms of the stablecoin Market, Tether (USDT) has seen increased dominance since the beginning of the year. Its market capitalization has grown from $66.2 billion to $83.4 billion, signaling strong demand for OTC investors amid market uncertainties. USDT has a 67% dominance compared to other stablecoins such as USDC, DAI, and BUSD. USDC holds the second-largest market share with 20.8%, followed by DAI and BUSD with 3.17% and 2.7% dominance, respectively.
Outside of the dollar market, the euro leads the non-dollar stablecoin market with 92% dominance. The Australian dollar holds 4% dominance, while the British pound holds 3%. Other non-dollar stablecoins are relatively insignificant and concentrated around a single issuer. Singapore’s new stablecoin regulations include constraints for cryptocurrencies linked to the Singapore dollar or any G10 currency, indicating a belief that the dominance of the dollar and euro may change in the future..
#Singapore #publishes #Regulation #stablecoins
The MAS’s stablecoin framework is intended to support the use of stablecoins as a credible digital medium of exchange and bridge between fiat and digital asset ecosystems. Ho Hern Shin, the deputy director-general for financial supervision of the MAS, emphasizes the importance of compliance and urges stablecoin issuers to adapt early to the regulations. The MAS also clarified that stablecoins falling outside the defined types in the framework will not be prohibited but will continue to be subject to the current Digital Payment Token regulatory regime.
In terms of the stablecoin Market, Tether (USDT) has seen increased dominance since the beginning of the year. Its market capitalization has grown from $66.2 billion to $83.4 billion, signaling strong demand for OTC investors amid market uncertainties. USDT has a 67% dominance compared to other stablecoins such as USDC, DAI, and BUSD. USDC holds the second-largest market share with 20.8%, followed by DAI and BUSD with 3.17% and 2.7% dominance, respectively.
Outside of the dollar market, the euro leads the non-dollar stablecoin market with 92% dominance. The Australian dollar holds 4% dominance, while the British pound holds 3%. Other non-dollar stablecoins are relatively insignificant and concentrated around a single issuer. Singapore’s new stablecoin regulations include constraints for cryptocurrencies linked to the Singapore dollar or any G10 currency, indicating a belief that the dominance of the dollar and euro may change in the future..
#Singapore #publishes #Regulation #stablecoins
