Singapore Tightens Stablecoin Rules with Reserve Requirements

Singapore's Monetary Authority of Singapore (MAS) has proposed new rules for stablecoin issuers under its Payment Services Act, aiming to establish clear standards for single-currency stablecoins pegged to the Singapore dollar or G10 currencies.

The MAS framework requires issuers to maintain fully backed reserves in segregated accounts, offer par-value redemption guarantees, and have technical capabilities to trace, freeze, and burn tokens involved in illicit activities.

MAS has signaled a selective approach, expecting only a limited number of stablecoins to achieve regulatory approval based on financial soundness, operational track records, and business viability.