Singapore and Japan review stablecoin regulatory frameworks

Regulators in Singapore and Japan are reviewing stablecoin frameworks as the sector faces increased scrutiny. The Monetary Authority of Singapore (MAS) has proposed a regulatory framework that would require stablecoin issuers to maintain 100% reserves in assets held by licensed financial institutions. Notably, the proposal includes a ban on paying interest or yields to holders, positioning stablecoins strictly as payment tools rather than investment products.

In Japan, authorities are looking into loosening tax reporting requirements for the sector. Meanwhile, the Bank for International Settlements (BIS) has expressed ongoing concerns regarding the credibility of stablecoins. BIS General Manager Pablo Hernández de Cos argued that stablecoins currently lack “singleness,” “interoperability,” and “financial integrity,” suggesting that tokenized bank deposits may serve as a more reliable alternative for large-scale payments.