Singapore Proposes Stablecoin Rules Covering Foreign Issuers and Interest Payments

The Monetary Authority of Singapore (MAS) has proposed amendments to the Payment Services Act 2019, putting its stablecoin framework into law and introducing rules for overseas issuers, interest payments, and issuer wind-down plans.

The framework allows qualifying jointly issued foreign and Singapore stablecoins to receive the MAS-regulated designation. The regulator is considering recognition for a limited number of foreign stablecoins governed by comparable overseas regulatory frameworks.

The proposed safeguards include an interest payment ban, stress testing, recovery plans, and orderly wind-down requirements for regulated issuers.