MAS Proposes Stablecoin Regulations for Singapore

Singapore has taken significant steps towards codifying its stablecoin regulatory framework into law. The Monetary Authority of Singapore (MAS) released proposed amendments to the Payment Services Act on September 1, along with a public consultation period. This move aims to establish a legal basis for regulating stablecoins issued in Singapore.

The proposed changes would bar interest payments on regulated stablecoins, mandate stress testing, and require issuers to prepare recovery and orderly wind-down plans. Overseas stablecoin issuers could also apply for MAS recognition if they are subject to equivalent regulation in their home jurisdictions.

According to the consultation statement, Ho Hern Shin, MAS deputy managing director for financial supervision, said that the framework aims to support stablecoins as a reliable digital medium of exchange and as a bridge between fiat currencies and the digital-asset ecosystem.

Singapore's move comes amid a broader push by major economies to enact legislation on stablecoins. The US passed the GENIUS Act last year, while the European Union has been enforcing its Markets in Crypto-Assets regulation since 2024. In Asia, Hong Kong introduced a dedicated licensing regime for stablecoins and granted its first license to Anchorpoint Financial, backed by HSBC Holdings Plc and Standard Chartered Plc.