Singaporean financial watchdog to consult public on stablecoin regulation

The Monetary Authority of Singapore (MAS), a city-state’s principal financial regulator, assesses the merits of a regulatory regime toward stablecoins. Current guidelines focus on Know Your Customer (KYC) and Anti-Money Laundering (AML) issues and do not reflect the specific risks to which the stablecoins are entitled. 

On Monday, the MAS official portal published a written response by the regulator’s head, Tharman Shanmugaratnam, to a question posed by one of Singapore’s members of parliament. The question inquired if there is data on the extent of Singaporeans’ exposure to the recent collapse in the value of the TerraUSD Classic (USTC) stablecoin and the Luna Classic (LUNC) token, and whether the MAS is actively considering measures to tackle similar crises.

Shanmugaratnam acknowledged that the Terra collapse illustrates the high risks of the crypto investment but insisted that the turmoil hasn’t affected the mainstream financial system and the economy significantly.

In the majority of his answer, the official revealed MAS’ current plans for stablecoins. He claimed that MAS is actively reviewing its approach to the regulation of stablecoins, as the existing framework, in which stablecoins, alongside other cryptocurrencies, are being considered digital payment tokens (DPTs), doesn’t cover the specific risks.

Hence, MAS “is assessing the merits of a regulatory regime” tailored to the specific characteristics of stablecoins. It shall focus on such aspects as regulating the reserve requirements and the stability of the peg. As the response specifies, MAS intends to consult the public on the possible guidelines in the upcoming months.

Related: Singapore’s financial watchdog considers further restrictions on crypto

On July 19, Ravi Menon, the managing director of MAS, publicly disavowed the associations between TerraForm Labs, Three Arrows Capital (a crypto hedge fund ongoing bankruptcy proceedings) and crypto regulation in Singapore. In his speech, Menon also emphasized the necessity to shift the regulatory focus from the KYC/AML toward the more nuanced risks posed by crypto.

All Dutch and English crypto news!

Blockchain venture capital funding down over 43% in July: Report

Typically a lagging indicator of the sector's health, the explosion of venture funding in the blockchain sector in 2021 and the first half of 2022...

Bitcoin ‘liveliness’ lowest since 2021 amid new 5-year BTC hodl record

Bitcoin (BTC) long-term holders are knuckling down as a record portion of the BTC supply stays dormant for years. Data from on-chain analytics firm Glassnode confirms...

Asia Broadband Inc. seeks to further unite the crypto and gold worlds

Asia Broadband, Inc. wants to further unite cryptocurrency and gold in a bid to improve the company's digital asset development group.   Asia Broadband, Inc. (OTC:AABB) announced...

How can DAOs involve fans in filmmaking? Expert answers

As more people begin to integrate Web3 technologies into entertainment and production, the use case for decentralized autonomous organizations (DAOs) in filmmaking has been highlighted...

Beste exchanges

Koop je crypto bij Bitvavo