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The Monetary Authority of Singapore Has Finalized the Regulatory Framework for Stablecoins, and Issuers Need To Meet Requirements Such As Information Disclosure

Singapore's Monetary Authority (MAS) announced on its official website that it has finalized the regulatory framework for stablecoins. MAS's stablecoin regulatory framework will apply to single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency. The issuer of such SCS must meet the following key requirements:

1. Value stability: The reserve assets of SCS will be subject to requirements regarding their composition, valuation, custody, and audit to ensure high value stability.

2. Capital: The issuer must maintain minimum basic capital and liquid assets to reduce bankruptcy risk and orderly wind down operations if necessary.

3. Redemption at face value: The issuer must return the face value funds of SCS to the holder within five working days after a redemption request.

4. Disclosure: The issuer must provide appropriate disclosures to users, including information on SCS value stability mechanisms, SCS holder rights, and reserve asset audit results. Only stablecoin issuers who meet all the requirements under this framework can apply to MAS for their stablecoins to be recognized and labeled as "MAS-regulated stablecoins." This label will allow users to easily differentiate MAS-regulated stablecoins from other digital payment tokens.

Anyone who misrepresents a token as a "MAS-regulated stablecoin" may be subject to penalties under MAS's stablecoin regulatory framework and be listed on MAS's investor alert list. If users choose to trade stablecoins not regulated by MAS, they should make wise decisions about the accompanying risks.

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