SIO-6.5.1

Stablecoin issuers must, at all times, ensure that holders of approved stablecoins have a direct legal right to redeem the approved stablecoins for the pegged fiat currency at par value.

SIO-6.5.2

Stablecoin issuers must ensure that all legitimate redemption requests are processed at par value and completed:

Redemption requests will be considered as processed when the stablecoin issuer completes the fund transfer process at their end and does not include the time it takes for the funds to reach the client account.

SIO-6.5.3

For the purposes of Paragraph SIO-6.5.2, a redemption request is generally deemed as legitimate if the client can meet the stablecoin issuers onboarding requirements, including the applicable customer onboarding rules to mitigate ML/TF risks.

SIO-6.5.4

Where a stablecoin issuer imposes any type of fees or charges, whether directly or indirectly, on redemption, such fees or charges must be reasonable and must not be set at a very high level to deter the clients from exercising their right to redemption. Stablecoin issuers must clearly communicate the fees and charges on redemption.

SIO-6.5.5

Stablecoin issuers must establish, maintain and implement clear and detailed policies and procedures for redemption. The redemption policy and procedure must be disclosed on the stablecoin issuer’s website.

SIO-6.5.6

Stablecoin issuers must prominently state the conditions and procedures for redemption in the stablecoin whitepaper and on the stablecoin issuer’s website. Any condition that the stablecoin issuer wishes to impose for redemption must be reasonable.

SIO-6.5.7

Where stablecoin issuers retain any approved stablecoin for re-circulation following redemption, the retention must be done in accordance with the requirements stipulated Paragraph SIO-5.1.4 i.e. the stablecoin issuer must ensure that the retained approved stablecoins are fully backed by reserve assets.

SIO-6.5.8

Where a stablecoin issuer uses the services of third parties for the purpose of redemption of approved stablecoin for fiat currency, the stablecoin issuer must ensure that the redemption is done at par value, without any restriction and in accordance with the requirements of this Section. However, where the third-party channels are unable to meet the redemption requests of clients, stablecoin issuers must provide direct redemption rights for such holders without any restrictions