Monetary Authority of Singapore proposes new stablecoin regulations

The Monetary Authority of Singapore (MAS) has issued a consultation paper proposing new legislative changes to the Payment Services Act to regulate stablecoins. Under the proposed MAS Single-Currency Stablecoin framework, only licensed issuers would be permitted to label their tokens as “MAS-regulated stablecoins,” helping users distinguish them from unregulated digital payment tokens.

The proposed requirements for issuers include maintaining sufficient capital, ensuring tokens retain their value, allowing users to redeem tokens at their original value, and providing necessary disclosures. MAS is also seeking feedback on broader issues, such as the recognition of foreign-issued stablecoins and the management of multi-jurisdictional issuance to safeguard financial stability and consumer protection.