Singapore's MAS has published a consultation paper on legislative amendments to implement its stablecoin regulatory framework.
The Monetary Authority of Singapore (MAS) issued the paper on 1 September 2026, proposing changes to the Payment Services Act 2019 (PS Act) that would give legal effect to its Single-Currency Stablecoin (MAS-SCS) regulatory framework. The amendments set out the conditions under which stablecoin issuers may qualify for MAS regulation, along with the safeguards required to support value stability and user protection.
Under the MAS-SCS framework, only issuers licensed by MAS will be permitted to describe themselves as regulated stablecoin issuers or to market their tokens as 'MAS-regulated stablecoins'. The designation is intended to help users differentiate stablecoins that meet MAS's value-stability requirements from other cryptocurrencies that use the term without being subject to equivalent oversight. With this in mind, stablecoins that fall outside the MAS-SCS framework will continue to be classified as Digital Payment Tokens (DPTs) and will remain subject to the consumer protection safeguards already applied to that category.
Proposals under consultation
The consultation paper requests feedback on the legislative provisions needed to implement core elements of the MAS-SCS framework, including requirements relating to value stability, capital, redemption at par, and disclosure. MAS is also seeking views on four further policy areas, informed by international developments in stablecoin regulation.
The first concerns multi-jurisdictional issuance: MAS has proposed allowing stablecoins jointly issued by a Singapore-based entity and a foreign issuer to qualify for MAS-SCS status, provided associated risks are adequately mitigated. The second addresses recognition of foreign-issued stablecoins regulated under comparable overseas frameworks, reflecting their use in cross-border wholesale transactions. In addition, the third area covers additional financial-stability measures, including a proposed prohibition on paying interest on MAS-regulated stablecoins, alongside stress-testing requirements and mandatory recovery and wind-down planning for issuers. Furthermore, the fourth relates to consumer protection, where MAS has proposed safeguards consistent with those already applied to other PS Act licensees, including a requirement to safeguard customer funds received before stablecoins are issued.
Regulatory context
The consultation forms part of MAS's continuing work on the MAS-SCS framework, introduced to establish regulatory guardrails for stablecoins as asset tokenisation gains traction. According to MAS, well-regulated stablecoins could serve as a settlement asset within tokenised financial markets, provided risks to users and the broader financial system are managed. Ms Ho Hern Shin, MAS Deputy Managing Director (Financial Supervision), said that the amendments are intended to support responsible innovation while maintaining consistent standards of governance and value stability.
MAS has invited public feedback on the proposed amendments.
