Singapore's Monetary Authority released a consultation on amendments to the Payment Services Act that would codify stablecoin regulation and permit jointly-issued cross-border stablecoins alongside domestic offerings. The consultation, which closes October 16, implements the framework MAS outlined in 2023.
The move reverses an earlier restriction limiting the regime to stablecoins issued within Singapore. The MAS consultation specifies that foreign-regulated issuers may participate only in jointly-issued arrangements, a structure used by multi-jurisdictional stablecoin programs where reserve and operational control are shared across licensed entities.
Under the framework, all stablecoins require 100 percent backing by high-quality liquid assets, par redemption on demand, and prohibition of yield or returns to holders. Issuers must maintain separate reserve accounts and undergo regular audits. The regime applies to stablecoins pegged to fiat currencies, commodities or a basket of either.
Singapore became one of the first jurisdictions to publish stablecoin rules in 2023, when MAS tabled the policy framework following consultations. The Payment Services Act amendments now provide the statutory authority to implement those rules. Other jurisdictions including Hong Kong and Dubai have since released stablecoin licensing regimes, though most restrict issuance to domestic or regional entities.
The jointly-issued carve-out permits foreign participation where operational control and compliance oversight remain distributed among licensed local operators. The structure mirrors how multi-currency stablecoin programs operate, with custody and issuer responsibilities split by jurisdiction.
MAS received over 80 responses during its initial 2023 consultation on stablecoins. The current amendment process will solicit feedback on the legislative text, reserve requirements, and audit standards before parliament votes. If passed, the amendments would make Singapore the first commonwealth jurisdiction to embed stablecoin rules directly in payment services legislation rather than guidance.
The consultation closes in 45 days. MAS has not announced a timeline for parliamentary debate, though the agency typically moves amendments to vote within six months of closing consultation.
