Key Takeaways:
- Singapore’s Monetary Authority (MAS) is consulting on legislative amendments to introduce its stablecoin regulatory framework under the Payment Services Act.
- The proposed rules center on reserve assets and stability, redemption, disclosures and protections for holders of regulated stablecoins.
- MAS is also asking for opinions on stablecoins issued across borders, foreign-issued stablecoins and the interest payments that can be made to the holders of stablecoins.
The Monetary Authority of Singapore (MAS) is seeking feedback on changes to laws governing the market for cryptocurrencies due to its new rules for stablecoins. Singapore is seeking opinions on proposed regulations to cryptocurrency laws, given its new stablecoin rules. Proposals include providing a more clear definition of the status of qualifying stablecoins, as well as increasing the investment protections for consumers.
The draft proposals would provide the criteria for issuing a stablecoin that meets the requirements of being regulated by MAS as well as for the platforms that issue these tokens to ensure their stability.
It places emphasis on “single-currency stablecoins (SCS)” in Singapore, created and linked to the Singapore dollar or one of the G10 currencies. If the issuers are able to do so, then their tokens can be classified as MAS-regulated stablecoins.
The proposed framework also includes requirements aimed at guaranteeing the value of these tokens. The stablecoin issuers would have to ensure that their reserve assets are suitable, and that their capital, solvency and redemption requirements are met.
With this focus, the framework is designed to provide more stability to these assets and place greater emphasis on protecting the value afforded by stablecoins, not solely on the confidence of the market.
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Higher Level of Protection Given to Stablecoin Investors
MAS is also recommending changes to better inform users of transactions where they are holding regulated stablecoins.
The issuer(s) will have to disclose, so users will be better informed about the use of the stablecoin and the arrangement(s) used. They would also mandate that an issuer give the substitute a mechanism for redeeming its stablecoins at the intended rate in line with the proposed policies.
The measures aim to counter some of the primary dangers of stablecoins, including when trust in a token’s reserves or confidence in a token is at stake.
Stablecoins that do not meet the standards set by the MAS would not be eligible to hold the stablecoin label. Instead, they would however continue to enjoy the current regulatory treatment for digital payment tokens.
MAS Examines Cross-Border Stablecoins
The consultation also considers aspects beyond stablecoins that are issued directly in Singapore.
MAS is asking for comments on dual jurisdiction stablecoin issuance and on how to handle certain stablecoins issued abroad. This, in turn, may impact the relationship between foreign stablecoin issuers and Singapore’s regulatory framework.
Another question being considered is whether stablecoin makers can offer interest or rewards to their users. The question is particularly relevant as stablecoins increasingly develop beyond their basic role as crypto trading instruments.
The consultation marks a new stage in Singapore’s push to enact a stablecoin policy. MAS welcomes comments from industry and other stakeholders on the proposed amendments and related policy changes until 16 October 2026.
