Highlights
- Singapore's Monetary Authority (MAS) proposed amendments to the Payment Services Act 2019 to formally cover stablecoins.
- The draft framework would ban interest payments on MAS-regulated stablecoins and add cross-border recognition for qualifying foreign-issued tokens.
- Only licensed issuers could market a token as “MAS-regulated stablecoin,” with new stress-testing and wind-down plan requirements attached.
- Public feedback on the proposal is open until October 16, 2026.
Singapore is moving to close the gap between its 2023 stablecoin policy and actual law. PANews reported, citing Singapore Business Review, that the Monetary Authority of Singapore plans to amend the Payment Services Act 2019 to introduce a formal stablecoin regulatory regime — covering cross-border recognition, interest-payment restrictions and financial stability safeguards. It's the legislative follow-through on a stablecoin framework MAS first finalized back in 2023, now being translated from policy guidance into enforceable statute.
The draft rules would apply to single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or any G10 currency. Under the proposal, only issuers holding an MAS license could market their tokens as “MAS-regulated stablecoins” — a labeling restriction meant to stop unregulated tokens from borrowing the credibility of the regime. MAS is also weighing whether to recognize a limited set of foreign-issued stablecoins governed by comparable overseas frameworks, particularly for cross-border wholesale use cases, and would allow jointly issued stablecoins registered in Singapore to qualify if risks are adequately mitigated. Separately, issuers would face new prudential obligations: stress testing, recovery planning, and orderly wind-down plans, alongside a blanket ban on paying interest to holders of MAS-regulated stablecoins. MAS is taking public feedback on the proposal through October 16, 2026.
The interest-payment ban is the clearest signal of MAS's intent: it wants stablecoins to function as payment instruments, not yield-bearing savings products that could compete with bank deposits or blur into unlicensed fund management. That mirrors the stance regulators in the EU and US have taken with MiCA and various stablecoin bills, and reinforces Singapore's positioning as a jurisdiction that will license stablecoin issuance but ring-fence it tightly. For issuers and exchanges operating in Southeast Asia, formal cross-border recognition — even limited to comparable frameworks — matters more than the interest ban; it's the piece that determines whether a Singapore-licensed stablecoin can move between wholesale counterparties in other markets without each jurisdiction re-litigating its legitimacy from scratch.
For the broader stablecoin market, currently dominated by USD-pegged tokens like USDT and USDC, a formalized SGD/G10 framework doesn't reroute existing volume overnight, but it does give banks, fintechs and asset managers a licensed on-ramp to issue non-dollar stablecoins with regulatory backing — a segment that has lagged the dollar-denominated market by a wide margin. It also sets a template other Asia-Pacific regulators, several of which have watched Singapore's phased approach since 2022, are likely to reference as they draft their own rules.
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The immediate date to track is October 16, 2026, when the consultation window closes; the resulting legislative amendments to the Payment Services Act, and how MAS handles the foreign-stablecoin recognition question in the final text, will determine how much this reshapes stablecoin issuance in the region.
FAQ
What law is MAS amending to regulate stablecoins?
MAS is proposing amendments to the Payment Services Act 2019 to introduce a formal stablecoin regulatory framework.
Which stablecoins would the new Singapore framework cover?
Single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency, plus certain jointly issued and foreign stablecoins under specific conditions.
Would MAS-regulated stablecoins be allowed to pay interest?
No. The proposal includes a blanket ban on interest payments to holders of MAS-regulated stablecoins.
When does the public consultation on the proposal end?
MAS is accepting feedback on the proposed amendments until October 16, 2026.
