Singapore proposes new stablecoin rules

• The Monetary Authority of Singapore has opened a consultation on proposed stablecoin rules.
• The changes would update the Payment Services Act and address gaps in current regulation.
• The proposals cover reserves, redemption rights and disclosure requirements for stablecoin issuers.

The Monetary Authority of Singapore (MAS) has opened a public consultation on proposed stablecoin rules under the Payment Services Act.

The proposed changes would create specific rules for stablecoin issuers and service providers operating in Singapore.

The consultation addresses areas including reserve management, redemption rights and disclosure requirements.

Singapore's Payment Services Act has regulated payment services, including digital payment token services, since 2019.

The proposed framework would likely require stablecoin issuers to obtain an MAS licence if the changes are adopted.

The consultation reflects wider regulatory efforts to address stablecoin risks while integrating digital assets into financial systems.

MAS has not yet adopted the proposed amendments, so the final requirements could differ from the current consultation proposals.