Singapore continues to make progress in regulating the cryptocurrency industry.
Recently, the Monetary Authority of Singapore, MAS, published a legal framework that will regulate stablecoins in the country, in order to ensure the stability of investors and users.
MAS reported in a Press release that the new regulatory framework will allow preserve value stability of these digital currencies, which can serve as a reliable medium of exchange for citizens.
The Monetary Authority of Singapore indicated that Stablecoins have the ability to support the transformation of payment systems and to accelerate the development and growth of innovation in the country.
Therefore, its new regulatory framework, focused on the stablecoin market, will determine the requirements that stablecoin issuers in the country must meet, both for those stablecoins linked to the Singapore dollar and for those linked to the fiduciary currencies of the countries that make up the Group of Ten or the G10.
MAS recognizes the potential of stablecoins
Ho Hern Shin, deputy managing director of MAS, said that the new regulatory framework that the authority has presented for stablecoins will also facilitate the use of these assets as a credible digital means of exchanging value. Shin also pointed out that the stablecoin will serve as a bridge between fiat and digital asset ecosystems.
“We encourage stablecoin issuers who wish to have their stablecoins recognized as “MAS-regulated stablecoins” to prepare in advance for compliance,” the director said.
Thus, Singapore's new regulatory framework will establish clear rules for stablecoin issuers, in order to ensure a high degree of guarantee to maintain the value stability of these digital currencies and to mitigate the risks of insolvency and liquidation.
MAS also hopes that this new legal framework will help boost the competitiveness and resilience of Singapore's financial sector, as well as its contribution to economic and social development.
Singapore launches funding programme for financial innovation
MAS has been collaborating with various government agencies, academic institutions and the private sector to foster an inclusive and sustainable innovation ecosystem. Last week, it announced, together with the Central Bank of Singapore, the launch of a new financing program, called fintech 2030, which aims to promote the development and adoption of new financial technology solutions in the country and the region.
Fintech 2030 is a $112 million (S$150 million) funding program that will cover different fintech and Web3 solutionsThe latter will be one of the priority areas of the new financing programme, the central bank said.
Through Web3, Singapore wants to secure and boost the development of A new generation of blockchain-based applications to improve financial inclusion, operational efficiency and resilience of the current financial system. Likewise, through Fintech 2030, the nation will also seek to accelerate the use and adoption of other emerging technologies, such as Artificial Intelligence and the Internet of Things (IoT).
Fintech 2030 is part of the Singapore government’s revamped Financial Sector Technology and Innovation Plan (FSTI 3.0) to support innovation in emerging technologies. Key areas of the plan include digitising financial services, improving cybersecurity and creating an open data infrastructure.
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