Singapore Tightens Stablecoin Rules with New Regulatory Framework

The Monetary Authority of Singapore (MAS) has proposed new regulations for stablecoins under the Payment Services Act. The rules aim to provide clarity on reserve assets and stability, redemption, disclosures, and protections for holders of regulated stablecoins.

MAS is also seeking feedback on stablecoins issued across borders, foreign-issued stablecoins, and interest payments that can be made to stablecoin holders. The consultation marks a new stage in Singapore's push to enact a stablecoin policy.

The proposed framework includes requirements for issuers to ensure their reserve assets are suitable, meet capital, solvency, and redemption requirements, and provide a mechanism for redeeming stablecoins at the intended rate.