MAS Proposes Framework for Regulating Stablecoin Issuers in Singapore

Singapore's financial regulator is making progress on implementing a regulatory framework for stablecoins. The Monetary Authority of Singapore (MAS) has published new proposed legislative amendments to the Payment Services Act, which would establish rules for stablecoin issuers to become MAS-regulated.

According to Ho Hern Shin, deputy managing director for financial supervision at MAS, the proposed framework will provide clear regulatory guardrails for stablecoins that meet high standards of value stability and governance. This is important as asset tokenization gains traction.

The proposed amendments include a ban on paying interest on regulated stablecoins, stress testing requirements, and plans for recovery and orderly wind-down of MAS-regulated stablecoin issuers.

MAS' efforts come as jurisdictions around the world move to establish their own stablecoin regulations. The coins are already regulated in the Europe Union under the Markets in Crypto-Assets (MiCA) regulation, and under the Genius Act in the U.S.