Redemptions of MAS-regulated single-currency stablecoins will have a longer grace period of five business days despite some arguing that it should be done in real time.
Follow up
While blockchains continue to revolutionize payments by allowing instant transfers, Singapore’s central bank believes three business days is a “timely transfer” for single-currency stablecoins (SCS), similar to transfer speed requirements for domestic money transfers.
On Aug. 15, the Monetary Authority of Singapore (MAS) released its regulatory framework for stablecoins in the city-state. In the newly-published guidelines, the financial regulator highlighted that it would consider three business days as a timely transfer for SCS despite some feedback calling for a shorter time frame.
Screenshot of MAS’ response to the public consultation on stablecoins. Source: MAS
According to MAS, while SCS transfers may be expected to be completed more quickly because they are done on a blockchain, transfers of MAS-regulated stablecoins may “occur on various types of blockchain infrastructure that may have different service standards.” The central bank wrote that these types of blockchain infrastructures may not always be under the control of intermediaries. MAS wrote:
Apart from stablecoin transfers, MAS also indicated that SCS redemptions need longer. According to the document, redeeming stablecoins back to fiat will be given five business days. This response from MAS came despite some respondents arguing that redemptions must be done “within a shorter time frame, or even on a real-time basis.”
Related: Circle preps $1B war chest to deal with market threats from PayPal and others
According to MAS, it will proceed with the requirement that issuers return the value of MAS-regulated SCS to holders within five business days. The regulator explained:
Cointelegraph reached out to MAS for comment but did not get an immediate response.
Asia Express: China’s risky Bitcoin court decision, is Huobi in trouble or not?
