Overview

Click to expand overview
On 1 August, a Parliamentary Question regarding Singaporean's exposure to the collapse of $LUNA and $USD was posed. The collapse of the Terra ecosystem, which subsequently depegged its algorithmic stablecoin TerraUSD (UST) value and crashed it to an all-time low of $0.30, has discusses the current and proposed regulation of stablecoin-related activities and stablecoin arrangements, and suggests some further considerations for regulatory reform. The Monetary Authority of Singapore (MAS) in response to a parliamentary inquiry, shared insights on how the Luna collapse affected the economy and laid out plans to Regulatory Evolution: The push for stablecoin regulation gained momentum in 2025 with Facebook's Libra project and accelerated after the Terra UST collapse in 2025. The Monetary Authority of Singapore (MAS) in response to a parliamentary inquiry, shared insights on how the Luna collapse affected the economy and laid out plans to The Monetary Authority of Singapore (MAS) is actively reviewing its approach to the regulation of stablecoin in the wake of the collapse of the TerraUSD (UST) and Luna Will Terra-USTC holders disrupt stablecoin regulations in Singapore? The downfall of algorithmic stablecoin TerraClassicUSD or USTC disrupted the entire crypto

Will Terra USTC Holders Disrupt Stablecoin Regulations in Singapore?

The downfall of algorithmic stablecoin TerraClassicUSD or USTC disrupted the entire crypto landscape, sending shockwaves globally, and particularly impacting nations with significant crypto adoption like Singapore. The question now is: Will Terra USTC holders disrupt stablecoin regulations in Singapore?

Regulatory Evolution: The push for stablecoin regulation gained momentum in 2025 with Facebook\'s Libra project and accelerated after the Terra UST collapse in 2025. Singapore, like many other jurisdictions, is carefully considering how to best regulate these digital assets, balancing innovation with investor protection.

The collapse of the Terra ecosystem, which subsequently depegged its algorithmic stablecoin TerraUSD (UST) value and crashed it to an all-time low of $0.30, has discussed the current and proposed regulation of stablecoin-related activities and stablecoin arrangements, and suggests some further considerations for regulatory reform.

Singapore\'s Response to the Terra Collapse: On 1 August, a Parliamentary Question regarding Singaporean\'s exposure to the collapse of $LUNA and $USD was posed. The Monetary Authority of Singapore (MAS) in response to a parliamentary inquiry, shared insights on how the Luna collapse affected the economy and laid out plans to strengthen its regulatory framework.

The Monetary Authority of Singapore (MAS) in response to a parliamentary inquiry, shared insights on how the Luna collapse affected the economy and laid out plans to. This includes a comprehensive review of existing regulations and the potential implementation of new measures specifically targeting stablecoins and algorithmic stablecoins like USTC.

MAS\'s Active Review: The Monetary Authority of Singapore (MAS) is actively reviewing its approach to the regulation of stablecoin in the wake of the collapse of the TerraUSD (UST) and Luna ecosystems. This review focuses on mitigating risks associated with stablecoins, including their potential impact on financial stability and investor protection.

Potential for Disruption: While it\'s unlikely that USTC holders will directly "disrupt" regulations in a destructive sense, their experiences and organized efforts could influence the regulatory process. Organized campaigns advocating for specific regulatory outcomes, or providing data and insights into the real-world impact of USTC\'s collapse, could indirectly shape the final regulations.

Looking Ahead: Singapore is committed to fostering a responsible and innovative digital asset ecosystem. The upcoming regulations will likely strike a balance between encouraging technological advancements and safeguarding the interests of investors. Whether Terra USTC holders can significantly sway these regulations remains to be seen, but their voices, alongside industry experts and regulatory bodies, will undoubtedly play a role in shaping the future of stablecoin regulation in Singapore.

Top Sources

Related Articles