MAS Considers Flexible Stablecoin Framework

The Monetary Authority of Singapore (MAS) is reevaluating its stance on stablecoins and has opened a public consultation to amend the Payment Services Act (PSA).

According to MAS, this move reflects policy developments since 2023 and introduces additional safeguards for issuers seeking to market tokens as 'MAS-regulated stablecoins.'

MAS is considering whether to allow certain stablecoins jointly issued by a Singapore issuer and a foreign issuer to fall under its regulatory framework. The regulator proposes that such tokens be labeled 'MAS-regulated stablecoins' if the associated risks are sufficiently mitigated.