MAS Proposes Route For Jointly Issued Stablecoins To Qualify Under Its Framework

TL;DR

• The Monetary Authority of Singapore (MAS) opened a public consultation to recognize stablecoins issued across multiple jurisdictions under its regulatory framework.
• The proposal would allow tokens jointly issued by a Singaporean and a foreign issuer to receive the “MAS-regulated stablecoins” label if risks are adequately mitigated.
• MAS is also evaluating the recognition of foreign stablecoins regulated under comparable frameworks for use in cross-border wholesale transactions.

The Monetary Authority of Singapore (MAS) has reopened the debate around its regulatory framework for stablecoins by launching a public consultation that proposes allowing jointly issued tokens by entities from different jurisdictions.

This process aims to revisit the stance adopted in 2023, when the regulator restricted the scheme to stablecoins issued exclusively in Singaporean territory and pegged to the Singapore dollar or a G10 currency.

The consultation covers legislative amendments to the Payment Services Act (PSA), the regulation that governs payment services and operators in the country. Under the central proposal, a stablecoin jointly issued by a local and a foreign issuer could qualify as a “MAS-regulated stablecoin”, provided that the associated risks are sufficiently mitigated.

… Continue reading the full article at the original source below.