MAS Seeks Feedback on Stablecoin Regulation Proposals

The Monetary Authority of Singapore (MAS) has issued a consultation paper on proposed legislative changes to regulate stablecoins and protect users.

The MAS Single-Currency Stablecoin framework proposes that only issuers licensed by the regulator can describe themselves as 'MAS-regulated stablecoins', helping users distinguish between well-regulated and unregulated tokens.

Unregulated stablecoins will be treated as digital payment tokens (DPTs) and subject to consumer protection safeguards. Issuers must ensure their stablecoins retain value, maintain sufficient capital, allow token redemption at original value, and provide relevant disclosure to users.