Tharman Shanmugaratnam, Senior Minister in charge of the Central Bank of Singapore, said in a statement that the Monetary Authority of Singapore (MAS), the country's central bank, is "actively reviewing" its approach to regulating stablecoins.
Shanmugaratnam said the bank is evaluating regulation that focuses on the "specific characteristics and risks" of stablecoins, which are cryptocurrencies that are usually fixed to currencies such as the US dollar.
Referring to the recent collapse of TerraUSD (UST) in May, Shanmugaratnam said MAS is considering potentially regulating reserve requirements for stablecoin issuers.
Shanmugaratnam also said that the Monetary Authority of Singapore plans to consult the public on possible regulations for stablecoins in the coming months.
