The Monetary Authority of Singapore (MAS) has proposed amendments to the Payment Services Act that would establish a formal regulatory framework for stablecoins. The public consultation period will remain open until October 16.

The proposed changes aim to strengthen Singapore's regulatory approach to digital payment tokens while providing greater clarity for stablecoin issuers and service providers. MAS has opened the proposal for public consultation, giving industry participants and stakeholders an opportunity to provide feedback before the framework is finalized.

NOW: Singapore's MAS proposes amendments to the Payment Services Act to establish a formal regulatory framework for stablecoins, open for public comment until October 16. pic.twitter.com/tXn0D48Qo7 — Cointelegraph (@Cointelegraph) September 1, 2026

https://x.com/Cointelegraph/status/2094670589646479803?ref_src=twsrc%5Etfw

Building a Clear Regulatory Framework

The proposed amendments are designed to establish a structured legal framework governing stablecoin issuance and related payment services. By formalizing the rules, MAS aims to support innovation while maintaining high standards for consumer protection, financial stability, and operational resilience.

The move builds on MAS's earlier work in this area: in 2022 the authority consulted on a proposed stablecoin regulatory framework, and in August 2023 it finalized its stablecoin regulatory approach, setting out requirements around reserve assets, redemption at par, and disclosure for issuers of single-currency stablecoins pegged to the Singapore dollar or G10 currencies. Anchoring the rules in the Payment Services Act, which has regulated digital payment token services since 2020, would give that framework formal statutory force. Singapore's framework also reflects lessons from the 2022 collapse of the TerraUSD stablecoin, which triggered global calls for stricter oversight of reserve-backed tokens.

Singapore has consistently positioned itself as a leading hub for digital assets through a balanced regulatory approach that encourages responsible innovation. The latest proposal marks another step in the country's evolving crypto policy.

Singapore Advances Stablecoin Regulation

The proposed Singapore stablecoin framework highlights the growing global focus on regulating digital payment assets. As jurisdictions around the world introduce stablecoin legislation—most notably the United States, which enacted stablecoin legislation in 2025—Singapore's updated framework could further strengthen its reputation as a major digital asset center. Market participants will be watching the consultation process, any revisions to the proposal, and how the finalized rules are implemented before the framework takes effect.