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Singapore c.bank proposes measures on crypto trading, stablecoin

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SINGAPORE (Reuters) – The central bank of Singapore has submitted a proposal for new regulatory measures on cryptocurrency trading and stablecoins.

Measures announced in two consultation documents on Wednesday include not allowing companies to lend out cryptocurrencies owned by retail customers, and ensuring that customers’ assets are kept separate from their own. .

Cryptocurrency trading businesses are also not permitted to offer incentives to attract retail customers, accept credit card payments, or provide loans to retail customers.

The Monetary Authority of Singapore (MAS) has said it will discourage the general public from speculative trading in cryptocurrencies and has already restricted the advertising of cryptocurrency services in public places.

“…Cryptocurrencies play a supportive role in the broader digital asset ecosystem and banning them would be impractical,” MAS said in a media release, noting that the proposed measures It should help reduce risk, he added.

Apart from addressing money laundering, terrorism financing, technology and cyber risks, MAS said it wants to ensure that regulated stablecoins have a high degree of value stability.

For stablecoins pegged to a single currency (SCS) with a value in circulation greater than S$5 million ($3.53 million), the issuer shall pay at least 100% of the face value of the unpaid SCS in circulation. Also, the asset must be denominated in the same currency as the fixed currency.

It states that all SCS issued in Singapore can only be pegged to the Singapore dollar or Group of Ten (G10) currencies.

Singapore banks will be allowed to issue SCS, and no additional reserve backing or prudential requirements will apply, the statement said.

Currently, there is only one stablecoin issued in Singapore.

The Asian financial hub initially attracted major cryptocurrency businesses like Binance, but some left the city-state and moved to the United Arab Emirates earlier this year, citing strict regulations in Singapore.

It is unclear when the proposed measures will be implemented, but we ask the public to provide feedback by December 21st.

($1 = 1.4160 Singapore Dollar)

Reporting by Chen Lin, Singapore Editing by Ed Davies

Our criteria: Thomson Reuters Trust Principles.

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