A report from the Asian cryptocurrency industry says that with the recent release of a thorough regulatory framework by the Singaporean monetary authority, the cryptocurrency landscape in Singapore is undergoing a dramatic change, which has compelled major digital asset and payments companies consider entering the stablecoin market.
Pioneers, including the country’s giants Circle Internet Singapore (Circle Singapore), cryptocurrency exchange StraitsX, and DCS Card Centre, are interested in exploring new avenues within the stablecoin ecosystem with the help of the revised regulatory framework.
It was gathered that Mr. Chan Yam Ki, Vice-President of Strategy and Policy at Circle, a prominent issuer of the USDC stablecoin (the second-largest stablecoin in the world), disclosed that the business is actively evaluating opportunities within the scope of its existing licensed capacities. Chan added that the simplicity and direction of this architecture have given Circle a planned way to increase the number of stablecoins it offers.
XSGD Singdollar stablecoin provider StraitsX, co-founded by Mr. Liu Tianwei, is actively contemplating obtaining the Monetary Authority of Singapore (MAS) regulated label. Mr. Tianwei stated that StraitsX is well-positioned to help Singapore’s stablecoin ecosystem expand with the help of its license for digital payment token (DPT) services.
It was gathered that while DCS Card Centre, operates within the parameters of Singapore’s Banking Act, StraitsX and Circle Singapore have each been awarded licenses to run digital payment token services. When approached, Karen Low, the chief executive of DCS, emphasized how well the MAS framework complements the DUS stablecoin, which is 1:1 tied to the U.S. dollar.
Another industry expert, and the Senior Policy Advisor at blockchain intelligence company TRM Labs, Ms. Angela Ang, has emphasized that despite this new legal step, there still needs to be monitoring for specific stablecoin-related activities outside the scope of the existing framework. Ang explained that this latest development illustrates how policies are continually evolving and being improved in the dynamic Bitcoin sector.
Stakeholders, Market Players Comment On Move By Singapore’s Monetary Authority
Mr. Lim Tung Li, Senior Policy Advisor for the Asia-Pacific area at blockchain research company Elliptic, acknowledged the Monetary Authority of Singapore’s forward-thinking attitude. Mr. Lim admitted that the regulatory structure will likely change as the industry develops and adopts new technical possibilities.
Claire Huang, a Business correspondent at The Straits Times, commended the effort of the Singaporean authorities, saying that the market excitedly expects the revolutionary possibilities that these efforts might unlock as digital asset companies, payments businesses, and regulatory agencies work together to shape the future of stablecoins in Singapore.
Mr. Lim explained that the Single Currency Stablecoin (SCS) framework existed during the aftermath of Terra/Luna’s bankruptcy around May 2022. According to him, this happened during the growing interest and subsequent adaptation of stablecoins as a reliable means of exchange between conventional payment systems and digital assets.
He also linked the adaptation of the SCS at a time when there was growing scrutiny of the cryptocurrency industry by global regulators. Mr. Calvin Cheng, the chairman & founder of Anchored Coins, a Swiss digital asset company, says that he believes the new framework by Singapore’s Monetary Authority will be challenging. He gave reasons that borders around the none globalization of the Singdollar. Cheng also added that it would be more reasonable if the authorities issued a stablecoin backed by the Euro currency.
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