The Monetary Authority of Singapore (MAS) has launched a public consultation on some proposed amendments. The amendments are suggested for the Payment Services Act 2019. The act will establish a dedicated regulatory framework for stablecoin issuers in Singapore. Under the proposed framework, only stablecoins issued by MAS-licensed entities would be allowed to trade in the country. The regulator said the proposed rules are intended to protect users.

MAS Proposes Full Reserve Backing for Stablecoins

The proposed framework will now require licensed stablecoin issuers to maintain reserves equivalent to 100% of their outstanding tokens. The reserves will require high-quality and liquid assets held in segregated accounts. Stablecoin holders would also have the right to redeem their tokens at par value. The requirements are designed to ensure that issuers maintain sufficient assets to meet redemption demands and preserve the value of regulated stablecoins.

MAS is also proposing restrictions on how licensed stablecoins can provide benefits to holders. Under the proposed rules, issuers would be prohibited from paying interest or offering other benefits. Additional requirements under consideration include quarterly stress testing, recovery plans, and orderly wind-down arrangements. Issuers would also need the technical capability to trace, freeze, or burn stablecoins associated with illicit activities.

MAS plans to restrict circulation of stablecoins which fail to fulfil the requirements. The authority may also delist the stablecoin.

Singapore Expands Stablecoin Regulatory Framework

The consultation, published on September 1, 2026, builds on the stablecoin regulatory framework that MAS finalized in 2023. The proposed amendments primarily focus on single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency.

MAS is also seeking feedback on several related issues, including stablecoins issued across multiple jurisdictions and the possibility of recognizing certain foreign-issued stablecoins. Interested parties have until October 16, 2026 to submit feedback on the proposed amendments.