Singapore proposes new stablecoin rules covering foreign issuers and interest

The Monetary Authority of Singapore has proposed amendments to the Payment Services Act 2019 that would put its stablecoin framework into law while introducing rules for overseas issuers, interest payments and issuer wind-down plans. Summary MAS has proposed Payment Services Act amendments that would put Singapore’s stablecoin regulatory framework into law. The framework would allow qualifying jointly issued foreign and Singapore stablecoins to receive the MAS regulated designation. MAS is considering recognition for a limited number of foreign stablecoins governed by comparable overseas regulatory frameworks. Proposed safeguards include an interest payment ban, stress testing, recovery plans and orderly wind down requirements for regulated issuers. Public feedback on the proposed amendments and related stablecoin policies is open until Oct. 16. MAS published the consultation on Sept. 1, seeking feedback on how issuers can qualify under its Single-Currency Stablecoin framework and use the “MAS-regulated stablecoin” label. Responses are due by Oct. 16. The proposals would implement a framework first finalized in 2023, while extending it to areas that have developed as stablecoins ha...