MAS Proposes Strict Stablecoin Regulations Amid Global Competition
The Monetary Authority of Singapore (MAS) has taken a significant step towards regulating stablecoins in the country. In a consultation paper published on September 1, the MAS proposed amendments to the Payment Services Act 2019 that would formalize the MAS Single-Currency Stablecoin (MAS-SCS) framework.
The new framework requires issuers to maintain 100% reserve backing for their stablecoins at all times and guarantee redemption at par value within five business days. The regulator has explicitly stated it expects only a limited number of issuers and coins to receive authorization, based on a holistic assessment covering financial soundness and operational history.
The framework also introduces cross-border recognition provisions, allowing joint Singapore-foreign stablecoin issuance on a case-by-case basis, provided issuers demonstrate adequate risk mitigation strategies. This shift is seen as positioning Singapore as a potential bridge between Asian and Western stablecoin markets.