Singapore Proposes Strict Rules for Stablecoin Issuers

The Monetary Authority of Singapore (MAS) has proposed amendments to the Payment Services Act to formalize its stablecoin framework. The draft, open for public feedback until October 16, outlines new rules for licensed issuers.

According to the MAS proposal, issuers will need to obtain a license and comply with added regulations. This includes prohibiting interest payments to holders of single-currency stablecoins. The goal is to increase regulatory clarity while reducing yield-driven demand.

The MAS first announced its stablecoin framework in 2023, and this latest development aims to bring it into law. Companies operating in the space must now decide whether the official seal of approval is worth the extra cost and paperwork.