The Monetary Authority of Singapore (MAS) has opened a public consultation on proposed amendments to the Payment Services Act that would create a dedicated regulatory framework for stablecoins. The consultation, reported on September 1, 2026, aims to close gaps in the 2019 legislation, which currently regulates digital payment token services but does not specifically address fiat-pegged stablecoin issuance.
Under the proposal, stablecoin issuers operating in Singapore would need to obtain a formal license from MAS and meet stricter supervisory requirements. A central element is a 100% reserve mandate—every token in circulation would have to be matched by held reserve assets. The framework would also prohibit issuers from paying interest to token holders, positioning compliant Singapore stablecoins as payment and settlement tools rather than yield-generating savings products.
The consultation also seeks feedback on reserve management, redemption rights, and disclosure obligations, reflecting industry developments since 2023. MAS said the move is intended to align Singapore's rules with evolving global standards and maintain its status as a leading fintech hub. If adopted, the framework could raise compliance and capital burdens for issuers compared with lightly regulated jurisdictions, but it may also boost user confidence and support wider stablecoin adoption.
For the broader crypto market, the proposal is a notable regulatory benchmark. Stablecoins are a cornerstone of trading, payments, and decentralized finance, and Singapore’s approach could influence other Asian and international regulators. While the requirements are conservative—especially the no-interest rule—the overall direction points toward greater legitimacy for fully backed stablecoins, keeping them structurally distinct from Bitcoin’s self-custodied, fixed-supply model.
