Singapore Revises Stance on Foreign-Issued Stablecoins with New Regulatory Framework

The Monetary Authority of Singapore (MAS) is reconsidering its stance on stablecoins issued across multiple jurisdictions. In 2023, MAS finalized a framework for single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency.

However, it cited difficulties establishing regulatory equivalence and cooperation with other jurisdictions. It also noted technical challenges in tracing where commingled stablecoins originated and determining whether overseas reserves would be sufficient to meet redemption requests.

MAS is now proposing that jointly issued tokens by a Singapore issuer and a foreign issuer could be regulated under the framework and labeled “MAS-regulated stablecoins,” provided that associated risks are sufficiently mitigated.