The Monetary Authority of Singapore (MAS) has released a consultation paper proposing legislative amendments to the Payment Services Act 2019. These changes aim to implement a regulatory framework for stablecoins in Singapore, ensuring issuers meet specific safeguards for value stability and user protection. The consultation seeks public feedback on these amendments until 16 October 2026.
The MAS Single-Currency Stablecoin (MAS-SCS) framework will allow only licensed issuers to label their stablecoins as “MAS-regulated stablecoins,” distinguishing them from other cryptocurrencies. Non-regulated stablecoins will be treated as Digital Payment Tokens (DPTs), subject to existing consumer protection measures.
Key proposals include allowing stablecoins issued jointly by Singaporean and foreign entities to be regulated under the MAS-SCS framework, recognising certain foreign-issued stablecoins, and introducing additional requirements to safeguard financial stability. These include prohibiting interest on MAS-regulated stablecoins and mandating stress testing and recovery plans.
MAS Deputy Managing Director, Ho Hern Shin, stated, “MAS’ proposed legislative amendments will give effect to a stablecoin framework that promotes responsible financial innovation.” The framework is designed to support asset tokenisation and provide a credible settlement asset in tokenised financial markets.
The consultation paper also addresses consumer protection, proposing safeguards similar to those for existing licensees, such as securing customer funds before stablecoin issuance. MAS encourages stakeholders to review the consultation paper and submit their comments through FormSG.
