The Monetary Authority of Singapore (MAS) is reviewing its previous prohibition against cross-border stablecoins, putting forward a pathway that could allow certain jointly issued digital assets to meet its regulatory standards.
On Tuesday, MAS launched a public feedback period addressing proposed statutory updates to establish its stablecoin rules, alongside further policy suggestions responding to market changes since 2023.
A specific suggestion states that digital tokens co-issued by both a domestic entity and an international operator might gain regulation under this framework, earning the designation of “MAS-regulated stablecoins,” assuming related hazards are properly managed.
Additionally, the regulatory body is exploring the acceptance of a select group of foreign-managed stablecoins supervised by equivalent international standards, pointing to their usefulness for cross-border wholesale settlements.
These suggestions modify the regulator’s earlier stance from 2023 requiring eligible stablecoins to originate exclusively within Singapore. That year, the agency concluded its guidelines addressing single-currency stablecoins produced locally and anchored to the Singapore dollar or any G10 currency.
Back then, the authority highlighted obstacles regarding cross-border regulatory harmonization and international collaboration. Officials also pointed out technical complications in tracking the source of mixed stablecoins and ensuring overseas backing assets would suffice for redemption demands.
MAS suggests extra protections for issuers
This extensive inquiry intends to enact the 2023 stablecoin guidelines via modifications to the Payment Services Act (PSA), which serves as the main legislation regulating payment operations and providers in Singapore.
The outlined obligations address asset-backed price stability, capital reserves, face-value redemptions, and transparency reports. Only operators authorized through this system will have the right to promote themselves as approved stablecoin creators and brand their assets as “MAS-regulated stablecoins.”
Related: Japanese regulator requests tax filing exemption for trust-type stablecoins in 2027 reform
The institution also suggested banning creators from offering yields on approved stablecoins while demanding regular stress tests alongside operational recovery and winding-down strategies.
Further consumer protections would mandate that companies safeguard user funds collected prior to the actual minting of the corresponding digital tokens. Any stablecoins falling outside this specialized structure will remain categorized as digital payment assets under current guidelines.
The regulator will gather public feedback regarding these concepts until October 16.
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