Singapore Loosens Stablecoin Regulations, Opens Door for Foreign-Issued Tokens

The Monetary Authority of Singapore (MAS) is revisiting its stablecoin regulations, proposing changes that would allow select foreign-issued stablecoins to operate within Singapore's framework. The move comes through a public consultation on amendments to the Payment Services Act (PSA) and associated policy adjustments.

MAS is considering a pathway for 'jointly issued' stablecoins, which are issued by a Singapore entity together with a foreign issuer, to qualify as 'MAS-regulated stablecoins' if risks are adequately addressed. The regulator is also exploring whether a limited number of foreign-issued stablecoins could be recognized under similar overseas rules, particularly for cross-border wholesale usage.

The proposals would tighten issuer safeguards, including reserve stability expectations, disclosure requirements, and stress-testing. MAS says comments are open until Oct 16.