MAS consults on amendments to Payment Services Act 2019 to implement stablecoin regulatory framework

11 September 2026

On 1 September 2026, the Monetary Authority of Singapore (“MAS”) published a consultation paper seeking feedback on proposed amendments to the Payment Services Act 2019 (“PS Act”) to implement MAS’ regulatory framework for stablecoins in Singapore. The amendments will set out how stablecoin issuers may qualify to be MAS regulated, and the safeguards they must meet to support value stability and user protection. The consultation closes on 16 October 2026.

A stablecoin is a digital asset that is designed to maintain a constant value with reference to one or more specified fiat currencies or assets. When well regulated to preserve such value stability, stablecoins can serve as a trusted medium of exchange to support innovation, including the “on-chain” purchase and sale of digital assets.

The MAS Single-Currency Stablecoin (“MAS-SCS”) framework seeks to maintain a high degree of value stability in single-currency stablecoins (“SCS”) regulated by MAS. Issuers that are licensed under the MAS-SCS framework and meet the applicable requirements (“MAS-regulated stablecoin issuer”) may label their SCS as an “MAS-regulated stablecoin”, helping consumers and businesses distinguish them from stablecoins that are not MAS regulated. Stablecoins that are not MAS-regulated stablecoins will continue to fall within scope of the digital payment token (“DPT”) regime, for which all intermediation services are subject to regulation.

MAS first consulted on its proposed MAS-SCS framework to regulate stablecoins for value stability on 26 October 2022, and published its response to consultation feedback on 15 August 2023. The framework will apply to SCS issued in Singapore that are pegged to the value of the Singapore Dollar or any G10 currency. For more on the first consultation, please read our article “MAS finalises stablecoin regulatory framework, responds to feedback received on public consultation”.

Key legislative amendments

Definition of stablecoin

MAS proposes amendments to section 2(1) of the PS Act to clarify that stablecoins fall within the broader category of DPTs for the purpose of regulation under the PS Act, unless otherwise expressly provided. Stablecoins regulated or recognised under the MAS-SCS framework will not fall within the definition of other financial instruments, under the PS Act and other legislation.

Corresponding amendments will be made to the definition of “e-money” to more clearly distinguish between “e-money” and “stablecoin”, and to clarify that fiat-pegged stablecoins do not constitute e-money for the purposes of the PS Act.

Licensing of persons who hold themselves out as issuers of MAS-regulated stablecoins

MAS proposes amendments to Division 1 of Part 2 of the PS Act to set out the licensing framework for persons who wish to hold their stablecoin out as a “MAS-regulated stablecoin”. A new “stablecoin issuance” licence class will be introduced, and only persons granted a licence for MAS-regulated stablecoin issuance may hold themselves out as issuers of MAS-regulated stablecoins.

Division 2 of Part 2 sets out the key licensing and ongoing requirements for issuers of MAS-regulated stablecoins. Core obligations include maintaining reserve assets at least equal to the par value of all stablecoins in circulation, fulfilling redemption requests in the pegged currency within MAS-prescribed timeframes, and safeguarding customers’ funds until stablecoins are delivered. MAS-regulated stablecoin issuers will also be subject to existing requirements under the PS Act, including those relating to anti-money laundering and countering the financing of terrorism (“AML/CFT”), technology risk, and consumer protection.

To mitigate potential contagion risk to the stablecoin issuance activity, issuers will not be allowed to conduct other regulated activities beyond the issuance of MAS-regulated stablecoin. However, issuers may provide DPT services in respect of their issued MAS-regulated stablecoins where incidental to the MAS-regulated stablecoin business, without a separate licence.

Additional requirements for issuance of MAS-regulated stablecoin

Taking into account developments in technology, the regulatory landscape, and best practices across jurisdictions since 2023, MAS seeks comments on:

  • the proposal to prohibit issuers of MAS-regulated stablecoins from paying interest, return, or any other benefit to a holder that is directly or indirectly attributable to the holding of or balance of MAS-regulated stablecoins;
  • whether it is necessary to restrict issuers of MAS-regulated stablecoins from using monies received from customers and interest earned from it for on-lending and materially financing the business, and if so, how such restrictions should be calibrated; and
  • a potential requirement for a minimum proportion of reserve assets to be held in cash or bank deposits, to enhance value stability and manage unforeseen peaks in redemptions under stress scenarios.

Additional consumer protection requirements

To strengthen consumer protection in the stablecoin ecosystem, MAS proposes to:

  • require issuers of MAS-regulated stablecoins to safeguard monies received from customers, prior to the issuance of the stablecoin or prior to fulfilment of direct redemptions;
  • disallow any issuer of MAS-regulated stablecoin exiting the MAS-SCS framework from conducting all issuance business (including that relating to non-MAS-regulated stablecoins), or, alternatively, require issuers with revoked, lapsed, or surrendered licences to wind down their business and/or wind up their entity; and
  • provide powers for MAS to require issuers of MAS-regulated stablecoin with revoked, lapsed, or surrendered licences (including those undergoing winding up) to support orderly redemption of MAS-regulated stablecoins prior to winding up their business.

Additional risk management requirements

MAS states that stablecoin issuers should have effective risk management frameworks in place that comprehensively address all material risks associated with their functions and activities. In this regard, MAS proposes to:

  • require issuers of MAS-regulated stablecoins to conduct regular stress testing, and seeks comments on the frequency and manner in which it should be conducted;
  • introduce powers for MAS to impose additional liquidity and risk-based capital requirements where stress testing reveals critical vulnerabilities;
  • require issuers of MAS-regulated stablecoins to have in place plans for recovery and orderly wind-down, which should be reviewed regularly and approved at the board level, and shared with MAS, at least on an annual basis; and
  • require issuers of MAS-regulated stablecoins to have technical capability to trace, freeze, and/or burn their stablecoin, and seeks feedback on the feasibility and means of introducing potential AML/CFT measures such as requiring verified identification of every holder of MAS-regulated stablecoins, restricting the use of unhosted wallets to hold MAS-regulated stablecoins, and monitoring the stablecoins in circulation on an ongoing basis.

Framework for designated systemic stablecoins

To complement the non-mandatory MAS-SCS framework, MAS will introduce powers to designate a stablecoin as a “designated systemic stablecoin”, via the introduction of a new Part 2A to the PS Act. Issuers of such designated systemic stablecoins must meet key requirements of the MAS-SCS framework and enhanced requirements in line with the recommendations by the Financial Stability Board. Where the issuer fails to meet MAS’ requirements, MAS will be empowered to prohibit or suspend the circulation of the stablecoin in Singapore. The requirements will apply regardless of whether the stablecoin is issued in or outside Singapore, or whether it and its issuer are regulated under the MAS-SCS framework.

The factors MAS would consider in designating a stablecoin as systemic include (i) the size of the stablecoin in circulation; (ii) the interconnectedness of the stablecoin with payment systems in Singapore; (iii) the interconnectedness of the stablecoin with the broader financial system in Singapore; and (iv) the substitutability of the stablecoin.

Regulatory approach for stablecoins issued offshore

Multi-jurisdictional issuance of stablecoins

Stablecoins issued in a multi-jurisdictional issuance (“MJI”) arrangement involve the issuance of the same fungible stablecoin by related or affiliate issuing entities operating in different jurisdictions. The same fungible stablecoin may be concurrently issued by both a Singapore-incorporated issuer and a foreign-incorporated issuer, both sharing the same reserve pool.

MAS is of the view that bringing MJI stablecoins within a regulatory framework would provide greater protection and supervision than leaving them unregulated. MAS is therefore prepared to allow stablecoins to be issued concurrently from Singapore and one or more foreign jurisdictions, and for the issuer to hold out the stablecoin as “MAS-regulated”, provided the risks associated with MJI stablecoins are sufficiently mitigated.

For an MJI stablecoin to be regulated under the MAS-SCS framework, the Singapore-incorporated issuer must apply for a stablecoin issuance licence under the MAS-SCS framework. Accordingly, issuance of such MJI stablecoin will need to comply with the regulatory requirements under the MAS-SCS framework, except for the requirement for (i) the issuer to be incorporated in Singapore; and (ii) the issuer to hold value of reserve assets that equal to or exceed the value of stablecoins in circulation. MAS will be empowered to grant exemptions from these requirements within the MAS-SCS framework on a case-by-case basis.

To maintain a high degree of value stability of MAS-regulated stablecoins in an MJI arrangement, MAS proposes the following safeguards:

  • Status of foreign issuer and its regulatory regime: Foreign issuers of an MAS-regulated stablecoin in an MJI arrangement must be supervised under a stablecoin regulatory regime that MAS deems substantively equivalent to the MAS-SCS framework.
  • Reserve asset requirements: The composition of reserve assets held by all issuing entities should meet the stricter of either the MAS-SCS framework, or that imposed by the competent authority of the foreign issuer.
  • Comparable terms of issuance and redemption: The rights of all SCS holders should be comparable across all issuing entities, and issuer should meet the stricter of the regulatory requirements where there are differences between the requirements of the MAS-SCS framework and those of the other jurisdiction(s).

MAS also seeks comments on measures to ensure an orderly wind-up and recovery under an MJI model.

Recognition for foreign-regulated stablecoins

MAS proposes to introduce a new Part 2B to the PS Act to recognise, on a case-by-case basis, a limited number of stablecoins issued by issuers regulated under competent authorities and regulatory frameworks that are assessed to be substantively equivalent to the MAS-SCS framework, provided that MAS is satisfied that they are well-regulated for value stability on an ongoing basis.

For a stablecoin to be “recognised”, the issuer will need to fulfil certain further conditions, some of which are similar to the safeguards proposed for regulating MJI issuers. Stablecoins that meet these requirements can then be held out as a “recognised” foreign-issued stablecoin or a similar title.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg:

 

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