Singapore Central Bank: Stablecoins Redemptions Take 5 Days

16. August 2023 By admin Off

• Singapore’s central bank released a regulatory framework for stablecoins in the city-state.
• The MAS considers three business days as a timely transfer for single-currency stablecoins.
• Redemptions of MAS-regulated single-currency stablecoins will have a longer grace period of five business days.

Singapore Central Bank Releases Regulatory Framework for Stablecoins

The Monetary Authority of Singapore (MAS) has released its regulatory framework for stablecoins in the city-state on Aug. 15, with three business days deemed as a “timely transfer” for single-currency stablecoins (SCS). Redemptions of MAS-regulated SCS will have a longer grace period of five business days.

Three Business Days is ‘Timely Transfer’ For Single Currency Stablecoins

MAS believes three business days is considered to be a “timely transfer”for SCS transfers, similar to transfer speed requirements for domestic money transfers. This timeline was established despite some feedback calling for shorter time frames and even real time transfers due to blockchains allowing instant payments.

5 Business Days Allowed For Redemptions Of MAS Regulated SCS

While redemptions may need to be done quicker than other transfers due to blockchain technology, MAS still requires that issuers return the value of MAS regulated SCS within five business days. This timeline is meant to balance responsiveness and making sure there is enough time under various stress situations.

Public Consultation On Stablecoin Transfers & Redemptions

MAS opened public consultation on the issue before settling on these timelines, with many arguing that redemptions should be done within shorter or real time frames. Despite these calls, the financial regulator decided to proceed with their initial proposal in terms of both transfers and redemptions timelines.

Conclusion

                                                                                            MAS has concluded that while blockchain infrastructures can allow almost instantaneous payments, three business days is considered an acceptable timeline for transfers while redemption times are given an additional two business day buffer at five total days