Singapore Targets Foreign Stablecoin Issuers

MAS Moves to Codify Stablecoin Rules Into Law

Singapore's Monetary Authority (MAS) has proposed a sweeping update to its stablecoin framework that would extend regulatory oversight beyond domestic players to cover foreign issuers for the first time.

MAS has proposed amendments to the Payment Services Act of 2019 to formally codify Singapore's stablecoin framework into law. The consultation would establish a dedicated stablecoin issuance license and reserve the label "MAS-regulated stablecoin" for tokens whose issuers meet the full regime.

The framework would allow qualifying jointly issued foreign and Singapore stablecoins to receive the MAS-regulated designation, while MAS is also considering recognition for a limited number of foreign stablecoins governed by comparable overseas regulatory frameworks.

Key Requirements: Reserves, Interest Bans, and Wind-Down Plans

The proposed rules cover reserve backing, redemption at par, disclosure, and capital requirements for issuers. Specifically, issuers would need reserves covering at least 100% of outstanding stablecoins in circulation.

MAS proposes stopping issuers from paying interest or providing other benefits calculated by reference to a customer's stablecoin balance. The restriction applies to benefits tied directly to holding an MAS-regulated stablecoin, and the rule would preserve the tokens' intended role as payment and settlement instruments rather than deposit or investment products.

Additional proposed safeguards include stress testing, recovery plans, and orderly wind-down requirements for regulated issuers.

This is a proposal, not a law: MAS is seeking industry comment, has not set an implementation date, and stressed that the designation does not amount to a government guarantee, deposit insurance, or a removal of redemption risk.

Under the latest consultation, MAS is asking interested parties to submit comments on the proposed Payment Services Act amendments and related stablecoin policy positions by October 16, 2026.

Sources:
crypto.news: Singapore proposes new stablecoin rules covering foreign issuers and interest
CryptoTimes: Singapore's MAS Proposes Stablecoin Law: 100% Reserves, No Interest