Following a public consultation in October of last year, the Monetary Authority of Singapore (MAS) has released its framework for regulating stablecoins.The Layer 2 Blockchain ‘Base’ of Coinbase Has Launched Officially, With… The structure established by the central bank will be applicable to single-currency stablecoins tied to the Singapore dollar or any other G10 currency, such as the US dollar, the euro, or the British pound. The MAS detailed various conditions pertaining to value stability, capital, and redemption capitals in an announcement on Tuesday for issuers of these stablecoins seeking regulation in Singapore.
For instance, stablecoins are required to have a minimum base capital of $1,000,000 Singapore dollars ($740,000) and to offer redemption within five business days of a request.In June, the MAS granted a license for digital payment token services to the Singapore branch of stablecoin issuer Circle. A number of governments have either established stablecoin regulatory frameworks or are in the process of doing so. A measure for such a framework is now being debated in Congress in the United States.