Singapore’s Monetary Authority plans to amend the Payment Services Act 2019 to introduce a stablecoin framework covering cross-border recognition, interest restrictions and financial stability safeguards. The rules would apply to locally issued single-currency stablecoins pegged to the Singapore dollar or G10 currencies, and only licensed issuers would be allowed to market tokens as MAS-regulated stablecoins.
MAS also proposed allowing jointly issued stablecoins registered in Singapore to fall under the framework if risks are adequately mitigated. It is also considering recognition for a limited number of foreign-issued stablecoins subject to comparable overseas regulation, particularly for cross-border wholesale use cases.
The proposal would ban interest payments on MAS-regulated stablecoins and impose added requirements on issuers, including stress testing, recovery planning and orderly wind-down measures. The consultation period is open until October 16.
MAS Proposes Stablecoin Rules on Cross-Border Recognition and Interest Ban
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