MAS Consults on Legislative Amendments to Enforce Singapore Stablecoin Framework

The Monetary Authority of Singapore (MAS) has launched a consultation on legislative amendments to the Payment Services Act 2019, formalising the regulatory framework for stablecoins. For fintech leaders, this move establishes clear legal distinctions between regulated stablecoins and digital payment tokens, providing a blueprint for how asset tokenisation will integrate with traditional financial systems.

What was announced

The proposed amendments introduce the MAS Single-Currency Stablecoin (MAS-SCS) framework, a targeted regime designed to bring order to the digital asset space. Under this regime, only issuers licensed by MAS can label their products as "MAS-regulated stablecoins." Any stablecoins not meeting these specific criteria will be classified as Digital Payment Tokens (DPTs), subjecting them to the standard consumer protection safeguards already in place for the broader cryptocurrency market. This distinction is intended to help users identify which assets are backed by the rigorous oversight of the Singaporean regulator.

The consultation paper outlines several critical requirements for issuers seeking the "MAS-regulated" status. These include maintaining value stability through high-quality reserve assets, meeting minimum capital requirements to ensure business continuity, and guaranteeing redemption at par within a specified timeframe. Furthermore, MAS is exploring the possibility of multi-jurisdictional issuance, which would allow stablecoins jointly issued by Singaporean and foreign entities to carry the MAS-regulated label, provided risks are sufficiently mitigated.

To protect the broader financial ecosystem, the regulator proposes a prohibition on interest payments for MAS-regulated stablecoins, ensuring they function as payment tools rather than investment vehicles. Issuers would also be required to undergo rigorous stress testing and maintain detailed plans for recovery and orderly wind-down. For wholesale use cases, MAS suggests recognising a limited number of foreign-issued stablecoins that are already subject to comparable regulatory oversight in other jurisdictions. Additionally, new safeguards will require issuers to protect customer monies received before stablecoins are issued, mirroring existing rules for other payment service providers. Interested parties have until 16th October 2026 to submit their feedback on these proposals.

"MAS’ proposed legislative amendments will give effect to a stablecoin framework that promotes responsible financial innovation. The framework will provide clear regulatory guardrails for stablecoins that meet high standards of value stability and governance. This is important as asset tokenisation gains traction. Trusted and well-regulated stablecoins can serve as a credible settlement asset in tokenised financial markets, while mitigating risks to users and the broader financial system."

Ms Ho Hern Shin, MAS Deputy Managing Director (Financial Supervision).

The companies involved

The Monetary Authority of Singapore (MAS) serves as the nation’s central bank and integrated financial regulator. Established to oversee the banking, insurance, securities, and overall financial sector in Singapore, MAS has been a proactive force in the evolution of digital assets. The organisation is responsible for the administration of the Payment Services Act 2019, which serves as the primary legislative vehicle for regulating payment systems and digital payment token services in the region. Unlike many jurisdictions where central banking and conduct regulation are split, MAS handles both, giving it a holistic view of financial stability and market innovation.

As a major global financial hub, Singapore’s regulatory stance often sets a precedent for other jurisdictions in the Asia-Pacific region and beyond. MAS has consistently focused on balancing the growth of fintech innovation with the necessity of financial stability and consumer protection. By proposing these amendments to the PS Act, MAS is positioning itself at the forefront of the global stablecoin market, aiming to provide a structured environment for issuers while ensuring that digital assets used for settlement meet the same rigorous standards as traditional financial instruments. The authority continues to engage with international best practices to ensure its framework remains robust against global market shifts and technological advancements.

What FF News has reported before

FF News has closely monitored the intersection of traditional finance and digital assets in Singapore. In August 2026, we reported that Visa and Nium Launch Stablecoin Settlement Pilot via MAS BLOOM Initiative, a project designed to bridge the gap between legacy payment rails and stablecoin technology. This followed news that a consortium including RFI and Safeheron Launch Post-Quantum Cryptography Pilot for Institutional Digital Assets, highlighting the focus on security within the Singaporean ecosystem. Additionally, the regional market has seen significant consolidation and expansion, such as when HashKey Group Moves to Acquire Singapore’s Asia Pacific Exchange (APEX) in July 2026, further cementing Singapore's status as a primary hub for institutional digital asset activity.

What this means

This announcement signals the end of the "wild west" era for stablecoins in one of the world’s most influential financial markets. By creating a protected "MAS-regulated" label, the regulator is effectively forcing a bifurcation of the market: those who can meet institutional-grade standards and those who cannot. The prohibition of interest payments is a particularly bold move that prioritises the role of stablecoins as a medium of exchange over their use as speculative or yield-bearing instruments. This framework puts pressure on global issuers to decide whether they will adapt to Singapore’s high-bar requirements or remain relegated to the more volatile DPT category. It also raises questions for the wider sector about how many foreign jurisdictions will eventually meet MAS' standards for comparable oversight.