Key Takeaways
MAS proposes a stablecoin issuance license requiring 100% reserves and a systemic stablecoin framework.
According to BlockchainReporter, the Monetary Authority of Singapore (MAS) proposed amendments to the Payment Services Act 2019 on September 1. The proposal introduces a dedicated stablecoin issuance licence requiring issuers to hold reserve assets at least equal to the par value of every token in circulation. Issuers would be barred from paying interest or other benefits to holders and must fulfill redemption requests within MAS-prescribed timeframes.
Additionally, the consultation paper introduces a Designated Systemic Stablecoin framework that allows the regulator to restrict or suspend the circulation of stablecoins posing systemic risks, regardless of whether they are issued domestically or overseas. MAS expects to authorise a limited number of issuers after assessing financial soundness, business viability, and operational track records. Comments on the proposals remain open until October 16.
The amendments build upon a voluntary 2023 framework for single-currency stablecoins, giving those requirements statutory force. The draft rules also contemplate technical abilities to trace, freeze, or burn tokens linked to illicit activity, alongside anti-money-laundering measures such as verifying holder identities and restricting unhosted wallets.
Source & Fact-Check Note
This report is synthesized from coverage by BlockchainReporter. Information has been fact-checked and structured for market clarity by CoinQuickly’s research desk.
Read original article at BlockchainReporter ↗
