Singapore’s MAS Considers Regulatory Framework for Jointly Issued Stablecoins
- The Monetary Authority of Singapore (MAS) has opened a public consultation on amendments to its stablecoin regulatory framework.
- Proposed changes may allow stablecoins jointly issued by Singapore and foreign issuers to be labeled as “MAS-regulated stablecoins.”
- The MAS is also considering recognizing certain foreign-issued stablecoins for cross-border transactions, contrary to its previous stance requiring local issuance.
- New issuer safeguards include prohibiting interest payments on regulated stablecoins and mandating stress tests and recovery plans.
- Public comments on the proposals are open until October 16, with the aim of enhancing consumer protection and financial stability.
The MAS aims to implement a comprehensive regulatory framework for stablecoins through these proposed amendments to the Payment Services Act (PSA). This shift reflects evolving market conditions since the initial framework was finalized in the previous year.
If adopted, these changes could significantly impact how stablecoins are regulated in Singapore, allowing foreign collaborations under strict guidelines while enhancing consumer safeguards in the digital payment landscape.
