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6.6 Regulation Singapore proposes strict stablecoin rules: 100% reserves, no interest, and high issuer standards. Public consultation is open until October 16, 2026.
The Monetary Authority of Singapore (MAS) has proposed amendments to the Payment Services Act 2019, aiming to establish a robust regulatory framework for stablecoins. Key proposals include mandatory 100% reserve backing, a prohibition on interest payments, and requirements for stress testing. Issuers must also develop comprehensive recovery and wind-down plans, and meet stringent disclosure and capital standards. Only licensed issuers will be allowed to label their tokens as 'MAS-regulated stablecoins.' Certain jointly issued foreign stablecoins may also qualify if they meet equivalent regulatory standards. Stablecoins not regulated by MAS will be classified as digital payment tokens. The public is invited to provide feedback on these amendments, including provisions for overseas issuers and multi-jurisdictional recognition. The consultation period closes on October 16, 2026. This initiative aims to transform policy guidance into enforceable law, enhance consumer confidence, and provide regulatory clarity as stablecoins become more integral to digital payments and tokenized finance.
