Singapore’s MAS Proposes Interest Ban on Regulated Stablecoins
- The Monetary Authority of Singapore (MAS) proposed banning interest payments on MAS-regulated stablecoins as of September.
- Issuers must undergo stress tests, recovery planning, and orderly wind-down arrangements.
- Selected foreign-regulated stablecoins could gain recognition if their risks are sufficiently mitigated.
- The framework applies to single-currency stablecoins pegged to the Singapore dollar or a G10 currency.
- Public comments on the proposed legislation are open until October 16.
The MAS aims to enhance financial safeguards for regulated stablecoins by prohibiting interest payments and requiring issuers to meet stringent operational standards. This move is part of broader efforts to ensure stability in tokenized financial markets while allowing limited pathways for foreign-issued stablecoins under comparable regulatory frameworks.
These proposals reflect MAS’s commitment to fostering responsible financial innovation while protecting users and the financial system from potential risks associated with stablecoin issuance and operations. (Source)
