The Monetary Authority of Singapore (MAS), the central bank and integrated financial regulator, has opened a public consultation on legislative changes intended to bring its stablecoin regulatory framework into force.
The consultation paper, published today, proposes amendments to the Payment Services Act 2019 that will set out how stablecoin issuers can qualify for MAS regulation and the safeguards they must meet to support value stability and protect users.
Under the MAS Single-Currency Stablecoin (MAS-SCS) framework, only issuers licensed under the regime will be permitted to describe themselves as licensed MAS-regulated stablecoin issuers or market their tokens as “MAS-regulated stablecoins”.
The regulator said this distinction is designed to help users separate well-regulated stablecoins from other digital assets that claim to hold a stable value without being subject to MAS oversight. Stablecoins that sit outside MAS regulation will instead be classified as Digital Payment Tokens and will be subject to the same consumer protection measures already applied to that category.
The consultation paper asks for feedback on the proposed amendments needed to implement the MAS-SCS framework, covering core requirements such as value stability, capital, redemption at par and disclosure.
MAS is also seeking views on several further policy areas, developed with reference to recent international developments and best practices in stablecoin regulation. On multi-jurisdictional issuance, MAS proposes allowing stablecoins jointly issued by a Singapore entity and an overseas issuer to be regulated under the MAS-SCS framework and labelled as “MAS-regulated stablecoins”, provided risks are adequately controlled.
The regulator also proposes recognising a limited number of foreign-issued stablecoins that are already regulated under comparable overseas frameworks, in light of cross-border wholesale demand for such tokens.
To protect financial stability, MAS is proposing several additional measures, including a ban on paying interest on MAS-regulated stablecoins, mandatory stress testing, and a requirement for issuers to maintain recovery and orderly wind-down plans.
On consumer protection, MAS proposes extending safeguards already used for existing Payment Services Act licensees, including a requirement to safeguard customers’ funds before any stablecoins are issued against them.
MAS Deputy Managing Director (Financial Supervision) Ms Ho Hern Shin said, “MAS’ proposed legislative amendments will give effect to a stablecoin framework that promotes responsible financial innovation. The framework will provide clear regulatory guardrails for stablecoins that meet high standards of value stability and governance. This is important as asset tokenisation gains traction. Trusted and well-regulated stablecoins can serve as a credible settlement asset in tokenised financial markets, while mitigating risks to users and the broader financial system.”
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