The Monetary Authority of Singapore (MAS) today published a consultation paper on proposed legislative amendments to the Payment Services Act 2019 (PS Act) to implement MAS’ regulatory framework for stablecoins
2 The MAS Single-Currency Stablecoin (MAS-SCS) framework permits only issuers licensed under the framework to describe themselves as licensed MAS-regulated stablecoin issuers and represent their stablecoins as “MAS-regulated stablecoins”. This helps users distinguish well-regulated stablecoins from other cryptocurrencies that purport to be “stablecoins” but are not subject to MAS regulation to keep their value stable. Non-MAS-regulated stablecoins will be treated as Digital Payment Tokens (DPTs) and be subject to the same consumer protection safeguards that apply to DPTs
3 The consultation paper seeks feedback on the proposed legislative amendments to implement the MAS-SCS framework, including key requirements relating to value stability, capital, redemption at par and disclosure.
- Multi-jurisdictional issuance of stablecoins – MAS proposes to allow stablecoins that are jointly issued by a Singapore and foreign issuer to be regulated under the MAS-SCS framework, and labelled as “MAS-regulated stablecoins”, provided that risks are sufficiently mitigated.
- Recognition of foreign-issued stablecoins – Recognising cross-border wholesale use cases of stablecoins, MAS proposes to recognise a limited number of foreign-issued stablecoins regulated under a comparable foreign regulatory framework.
- Additional requirements to safeguard financial stability – MAS proposes several enhancements to the MAS-SCS framework, including the prohibition of interest to be paid on MAS-regulated stablecoins, the requirement for stress testing, and to have in place plans for recovery and orderly wind-down of MAS-regulated stablecoin issuers.
- Additional consumer protection safeguards – MAS proposes to impose safeguards similar to those applicable to existing PS Act licensees, including the requirement to safeguard customer’s monies received before the stablecoins have been issued.
4 Ms Ho Hern Shin, MAS Deputy Managing Director (Financial Supervision), 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.”
5 For more details, please refer to the consultation paper here . MAS invites interested parties to submit their comments by 16th October 2026 via FormSG here .
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[1] A stablecoin is a digital asset that is designed to maintain a constant value with reference to one or more specified fiat currencies or assets. When well-regulated to preserve such value stability, stablecoins can serve as a trusted medium of exchange to support innovation, including the “on-chain” purchase and sale of digital assets.
[2] These include measures to determine a customer’s risk awareness to access DPT services, not offering any incentives to trade in DPTs, not providing any financing, margin or leverage transactions, not accepting locally issued credit card payments, among others.
[3] MAS first consulted on its proposed MAS-SCS framework to regulate stablecoins for value stability on 26 October 2022, and published its response to consultation feedback on 15 August 2023. The framework will apply to single-currency stablecoins (SCS) issued in Singapore that are pegged to the value of the Singapore Dollar or any G10 currency.
