MAS Proposes Strict Stablecoin Issuance Rules in Singapore
The Monetary Authority of Singapore (MAS) has proposed amendments to the Payment Services Act 2019, aiming to create a dedicated stablecoin issuance license. This new license would require issuers to hold reserve assets at least equal to the par value of every token in circulation and bar them from paying interest or other benefits to holders.
The consultation paper also introduces a framework for designating stablecoins as systemically important, which would allow the regulator to restrict or suspend their circulation. The MAS expects to authorize only a limited number of issuers, assessing applications based on financial soundness, business viability, and operational track record.
Under the proposed rules, licensed stablecoin issuers would have to maintain reserve assets at 100% of outstanding tokens and fulfill redemption requests within prescribed timeframes. The MAS also seeks views on requiring a minimum share of reserves to be held in cash or bank deposits, citing thresholds used in the UK and EU.