Description

Abstract

The Monetary Authority of Singapore’s vision to develop “an innovative and responsible digital asset ecosystem” has placed stablecoins firmly on the regulatory agenda. Stablecoins, as cryptoassets designed to maintain a stable value, are touted as having the potential to serve as a tenable medium of exchange for the digital asset ecosystem – so long as they are well-regulated and securely backed. Both this vision of a flourishing digital asset ecosystem, as well as the spectre of instability wrought by the recent algorithmic stablecoin collapse, speak to the need for sound regulation of stablecoins. This working paper therefore seeks to critically analyse Singapore’s emerging regulatory approach to stablecoins and stablecoin-related activities. First, it examines the regulatory concerns implicated by stablecoins. Second, it critically assesses the regulatory (and briefly, the legal) characterisations of stablecoins, focusing on the previous, present, and proposed regulatory characterisations under the Payment Services Act; and on potential alternative regulatory characterisations under banking and securities laws. Third, it discusses the Monetary Authority of Singapore’s current and proposed regulation of stablecoin-related activities, and suggests some further considerations for regulatory reform.

About the Speaker

Rachel is a Research Associate at the Centre for Banking & Finance Law. Prior to joining the Centre, Rachel was awarded an LL.M. from the University of California, Berkeley, where she was placed on the Dean’s List. Rachel also holds an LL.B. from the National University of Singapore and was admitted to the Singapore Bar in 2017.

From 2017 to 2020, Rachel practised as a lawyer in the Financial Institutions Group of Rajah & Tann Singapore LLP. Her experience in legal practice focused on financial services regulation, and covered legal and regulatory issues relating to banking, capital markets services, payment services, insurance, and fintech.