On Tuesday, the financial regulatory authority of Singapore announced the regulations governing stablecoins. This now places Singapore among the first jurisdictions to accomplish such regulations. 

Stablecoins represent a category of cryptocurrency designed to maintain a steady value relative to a traditional fiat currency. Many stablecoins assert their value is supported by a reserve comprising assets, for example cash or government bonds. Singapore wants to bring in more transparency regarding the reserves that are behind these stablecoins. 

The stablecoin market's total worth is around $125 billion, with two main tokens at the moment: Tether's USDT and Circle's USDC.  Having over approximately 90% of the market's overall value. 

Despite this, the realm of stablecoins remains largely without international regulation. Since Singapore is aiming to establish itself as a center for digital currencies, actively seeking to attract foreign companies, it seems like they are trying to make regulations that they believe would be seen as positive for the investing companies. These news is in light of criticisms from the cryptocurrency sector, concerning the regulatory framework in the United States.

Will this be positive news for the traders that are using these on daily basis? 

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