Stablecoins – a form of cryptocurrency pegged to a currency, commodity, or financial instrument – are gaining popularity for their ability to reduce price volatility. Widely used examples include USDT, USDC, and XSTD.
In Singapore, the Monetary Authority of Singapore (MAS) has introduced a clear regulatory framework for stablecoins to strengthen trust and stability. Under the rules:
- Reserves must be held in cash, cash equivalents, or Singapore Government bonds with a maturity of up to three months.
- Reserves must be denominated in the same currency as the stablecoin’s peg.
- Stablecoin activities are regulated under the Payment Services Act (2019) as digital token services.
- Importantly, only stablecoins issued in Singapore can qualify under the MAS framework.
For businesses and investors, this framework provides greater clarity but also sets stricter compliance requirements. Firms engaging in digital token activities will need to ensure robust financial governance, reporting, and compliance systems to meet MAS regulations.
At NS Global Consultants Pte. Ltd., we support businesses with corporate secretarial, bookkeeping, compilation, and tax services to help you navigate regulatory changes in Singapore’s fast-evolving financial landscape.
Contact us today to learn how we can assist your business in staying compliant and future-ready in the digital economy