Singapore strengthens controls on Stablecoins: unregulated assets could threaten financial stability

18.03.2025

TheMonetary Authority of Singapore (MAS) said it needs to tighten controls on the issuance and circulation of stablecoins, emphasizing that unregulated digital assets could pose a threat to the country's financial system. Ahead of new regulations scheduled to come into force in March 2025, the authority is stepping up measures to ensure transparency and reliability of digital currency transactions. According to MAS data, the volume of stablcoin transactions in the region has grown by more than 40% over the past year, reaching record highs. This rapid growth without strict oversight has raised concerns about possible market manipulation and threats to investors. The new rules include mandatory registration of issuers, asset reservations and regular reporting to boost confidence in the market. MAS officials note that the tightening of regulation is aimed at minimizing systemic risks associated with the possible loss of the peg of stablecoins to fiat currencies, which could lead to large-scale financial losses. The authorities also emphasize the importance of international cooperation to effectively control cross-border flows of digital assets. The new measures are expected to make the market more stable and secure for all participants, as well as to support innovation in digital finance, preventing the emergence of new threats to the national economy.