Singapore MAS Proposes Stablecoin Rules Under Payment Services Act

Singapore's Monetary Authority of Singapore (MAS) plans to amend the Payment Services Act 2019 to introduce a stablecoin regulatory framework covering cross-border recognition, interest restrictions, and financial stability safeguards. According to PANews, the framework would apply to single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or G10 currencies, and only licensed issuers could market their tokens as MAS-regulated stablecoins. MAS also proposed allowing jointly issued stablecoins registered in Singapore to fall under the framework if risks are sufficiently mitigated, and it is considering recognition of a limited number of foreign-issued stablecoins subject to comparable overseas regulatory regimes, especially for cross-border wholesale use. The proposal would also ban interest payments on MAS-regulated stablecoins and require issuers to conduct stress tests and submit recovery and orderly wind-down plans. The consultation period runs until October 16.