MAS Proposes Interest Ban on Regulated Stablecoins in Singapore

The Monetary Authority of Singapore (MAS) has proposed legislative changes that would ban interest payments on MAS-regulated stablecoins and introduce stronger financial safeguards.

The proposed amendments to the Payment Services Act 2019 aim to establish clear regulatory guardrails for stablecoins that meet high standards of value stability and governance, according to MAS Deputy Managing Director Ho Hern Shin.

The MAS framework currently applies to single-currency stablecoins issued domestically and pegged to the Singapore dollar or a Group of 10 (G10) currency. The new proposals would expand this structure by allowing stablecoins jointly issued by Singaporean and foreign entities to qualify when their risks are sufficiently mitigated.

The MAS is also considering recognizing a limited number of foreign-issued stablecoins supervised under regulatory frameworks that Singapore determines are comparable, but recognition would remain selective rather than automatic.