MAS Proposes Legislative Changes for Stablecoin Issuers

The Monetary Authority of Singapore (MAS) has launched a consultation on proposed amendments to the Payment Services Act 2019 to implement Singapore’s stablecoin regulatory framework. The proposed changes would establish how stablecoin issuers can qualify for MAS regulation and the safeguards required to support value stability and user protection.

MAS Stablecoin Framework Sets Issuer Requirements

Under the MAS Single-Currency Stablecoin (MAS-SCS) framework, only issuers licensed under the framework would be permitted to describe themselves as licensed MAS-regulated stablecoin issuers or market their tokens as “MAS-regulated stablecoins.”

Stablecoins that are not regulated by MAS would be treated as Digital Payment Tokens (DPTs) and subject to the same consumer protection safeguards applicable to DPTs.

The consultation seeks feedback on requirements covering value stability, capital, redemption at par and disclosure. These requirements form the core of Singapore’s proposed stablecoin regulation.

MAS Considers Cross-Border Stablecoin Rules

MAS is also seeking views on several additional policy areas. These include allowing stablecoins jointly issued by Singapore and foreign issuers to qualify under the MAS-SCS framework, provided related risks are sufficiently mitigated.

MAS also proposes recognising a limited number of foreign-issued stablecoins for cross-border wholesale use where they are regulated under comparable overseas frameworks.

Additional proposals include prohibiting interest payments on MAS-regulated stablecoins, introducing stress testing, and requiring recovery and orderly wind-down plans for regulated issuers.

Consumer Protection and Asset Tokenisation

The proposed framework would also introduce safeguards similar to those applying to existing Payment Services Act licensees, including requirements to protect customer funds received before stablecoins are issued.

MAS Deputy Managing Director Ho Hern Shin said the proposed amendments would establish clear regulatory guardrails for stablecoins that meet high standards of value stability and governance.

MAS also noted that trusted and regulated stablecoins could support settlement in tokenised financial markets as asset tokenisation develops.

The consultation represents a further step in Singapore’s approach to stablecoin regulation and digital asset compliance, with a focus on financial stability, consumer protection and responsible innovation.