Singapore weighs recognizing some foreign-issued stablecoins
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
The Monetary Authority of Singapore (MAS) is reconsidering its earlier restriction on stablecoins issued across multiple jurisdictions. It proposes allowing some jointly issued stablecoins, involving both Singapore and foreign issuers, to qualify under its regulatory framework and be labeled "MAS-regulated stablecoins." MAS is also exploring recognizing a limited number of foreign-issued stablecoins regulated under comparable overseas frameworks for cross-border wholesale transactions. The regulator has opened a public consultation on legislative amendments implementing the stablecoin framework and additional policy proposals.
Why it matters
The source implies the development could impact how stablecoins issued outside Singapore, especially those jointly issued or foreign-issued, are regulated and used within Singapore. It may facilitate cross-border wholesale transactions involving stablecoins and affect the labeling and marketing of such digital assets. The source does not explicitly state further impacts on markets, users, or policy.
Key context
In 2023, MAS finalized a framework for single-currency stablecoins issued solely in Singapore and pegged to the Singapore dollar or a G10 currency. The earlier rules restricted stablecoins from multiple jurisdictions due to challenges with regulatory equivalence, jurisdictional cooperation, and technical tracing of stablecoin origins and reserves. The current proposals revisit that stance, introducing issuer safeguards such as prohibiting interest payments on stablecoins, requiring stress tests, and mandating recovery plans.
Key numbers and entities
Monetary Authority of Singapore (MAS); Payment Services Act (PSA); the consultation deadline is October 16. References to 2023 stablecoin framework and G10 currencies are made, but no specific figures or tickers are provided.
What remains unclear
The source does not specify which foreign jurisdictions or stablecoins might qualify under the proposed expanded framework. It also does not clarify the criteria for "sufficient mitigation" of associated risks or the specific foreign regulatory frameworks deemed comparable. The potential impact on existing stablecoin issuers and users within Singapore remains unaddressed.