The Monetary Authority of Singapore (MAS) is seeking feedback on proposed legislative amendments that would introduce its stablecoin regulatory framework under the Payment Services Act. The consultation, announced on 3 September 2026, covers proposed changes to Singapore's cryptocurrency laws and marks a new stage in the country's push to enact a comprehensive stablecoin policy. Singapore has positioned itself as an early mover in digital asset regulation, having first outlined its stablecoin framework in principle in 2023, and this consultation moves that policy toward binding legislation.

The draft proposals include a clearer definition of the status of qualifying stablecoins and stronger investment protections for consumers. They would establish the criteria for issuing a stablecoin that qualifies as MAS-regulated, as well as requirements for the platforms that issue these tokens to ensure their stability.

Focus on Single-Currency Stablecoins

The framework places emphasis on "single-currency stablecoins (SCS)" in Singapore that are created and linked to the Singapore dollar or one of the G10 currencies. Issuers that meet the requirements would have their tokens classified as MAS-regulated stablecoins.

The proposed framework also includes requirements aimed at guaranteeing the value of these tokens. Stablecoin issuers would have to ensure that their reserve assets are suitable and that their capital, solvency and redemption requirements are met. With this focus, the framework is designed to provide greater stability to these assets and place more emphasis on protecting the value afforded by stablecoins, rather than relying solely on market confidence. Requirements of this kind — covering reserve quality, capital and redemption at par — reflect the same broad approach taken by other jurisdictions finalising stablecoin regimes, such as the European Union's MiCA rules and stablecoin legislation in the United States.

Stronger Protection for Stablecoin Holders

MAS is also recommending changes to better inform users of transactions involving regulated stablecoins. Issuers would be required to make disclosures so that users are better informed about the use of the stablecoin and the arrangements behind it. The proposals would also mandate that an issuer provide a mechanism for redeeming its stablecoins at the intended rate.

These measures aim to counter some of the primary risks associated with stablecoins, including situations where trust in a token's reserves or confidence in a token comes into question. Reserve disclosure and redemption rights have been central issues in past stablecoin failures, where loss of confidence in issuers' reserves contributed to market disruption.

Stablecoins that do not meet the standards set by MAS would not be eligible to carry the stablecoin label. They would, however, continue to be subject to the current regulatory treatment for digital payment tokens.

MAS Examines Cross-Border Stablecoins

The consultation also considers matters beyond stablecoins issued directly in Singapore. MAS is asking for comments on dual-jurisdiction stablecoin issuance and on how to handle certain stablecoins issued abroad, which may affect the relationship between foreign stablecoin issuers and Singapore's regulatory framework. How cross-border recognition is resolved will matter for major offshore-issued stablecoins seeking use in Singapore.

Another question under consideration is whether stablecoin issuers can offer interest or rewards to their users — an issue that has become particularly relevant as stablecoins increasingly develop beyond their basic role as crypto trading instruments, finding use in payments and tokenised financial products.

MAS welcomes comments from industry and other stakeholders on the proposed amendments and related policy changes until 16 October 2026. Following the consultation, MAS is expected to finalise the legislative amendments before the framework takes effect. Details of the consultation are available on the MAS website.