Singapore Proposes Full Reserves and Yield Restrictions for Stablecoins
Monetary Authority of Singapore proposes strict reserve backing and bans yield generation on stablecoins.
The Monetary Authority of Singapore (MAS) has published a proposed regulatory framework for stablecoin issuers operating within the jurisdiction. The rules mandate 100% reserve backing in liquid assets and implement a complete ban on offering yields to holders.
The regulatory structure aligns Singapore's domestic framework with major international standards established in the U.S. and the European Union. In addition to reserve requirements, the proposal outlines pathways for the potential recognition of foreign-issued stablecoins.
These strict measures aim to prevent structural runs and eliminate speculative practices, providing a safe and predictable environment for fiat-referenced digital settlement tokens in the Asian region.
Key takeaways
- Singapore mandates 100% reserve backing for stablecoins
- Proposed regulations ban yield generation on tokens
- Framework creates pathway for foreign stablecoin recognition