MAS Pushes Singapore Stablecoin Regulation Into Binding Law

Singapore's monetary regulator is translating its existing stablecoin framework into binding legislation. The Monetary Authority of Singapore has launched a public consultation on proposed amendments to the Payment Services Act, which would establish a dedicated licensing category for stablecoin issuers. The framework codifies requirements the regulator has previously outlined: issuers must maintain full reserve backing, allow redemptions at par value, and are prohibited from offering interest payments to token holders. This move formalizes guidance that has existed informally, giving the rules statutory weight and creating a clearer pathway for stablecoin operators in the jurisdiction.

The shift reflects a broader regulatory maturation around stablecoins, converting principles that have guided industry practice into enforceable legal obligations.

• MAS is converting years of stablecoin guidance into formal law through Payment Services Act amendments and a new dedicated license category.
• Stablecoin issuers will face binding requirements: 100% reserves, par-value redemption rights, and a ban on interest payments to holders.
• The consultation period signals the regulator is formalizing rules rather than introducing surprise restrictions.