Singapore Proposes Strict Stablecoin Rules Under MAS Framework

The Monetary Authority of Singapore (MAS) has proposed new rules for stablecoin issuers under the Payment Services Act. The move aims to formalize its single-currency stablecoin framework, which was finalized in August 2023.

To earn a 'MAS-regulated stablecoin' label, issuers must meet strict requirements, including fully backed reserves held in segregated accounts and par-value redemption guarantees. They will also need a standalone stablecoin issuance license.

MAS has signaled a selective approach to regulation, expecting only a limited number of stablecoins to achieve regulatory approval. The framework is open to multi-jurisdictional issuance and recognition of foreign stablecoins deemed 'substantively equivalent.'