Singapore Advances Stablecoin Regulation Amid Global Adoption

Singapore has made another move towards regulating stablecoins, publishing proposed legislative amendments to its Payment Services Act. The Monetary Authority of Singapore (MAS) is seeking public feedback on the changes, which would establish a framework for regulating stablecoins issued in the city-state.

The MAS first announced a stablecoin regulatory framework in 2022, but no timeline has been set for passing it into law. The proposed amendments prohibit stablecoin issuers from paying interest on regulated stablecoins and require stress testing. Licensed issuers would also need plans in place for recovery and orderly winding down.

The changes would allow foreign stablecoin issuers to apply for MAS recognition, but only if they are subject to comparable regulations in their home jurisdiction. This move brings Singapore closer to implementing its stablecoin regime, as other markets have raced to implement their own rules governing cryptocurrencies backed by other assets.