Singapore’s Stablecoin Rules Consultation Closes October 16

Singapore’s Monetary Authority is closing the door on public feedback for its proposed stablecoin framework this week. The consultation period ends October 16, with final rules expected to reshape how stablecoins are issued and sold in the city-state.

What MAS Is Proposing

Published on September 1, the proposals would amend the Payment Services Act 2019 to create a dedicated licensing regime for stablecoins pegged to a single currency. Licensed issuers would need to hold reserves worth at least the par value of all tokens in circulation and give holders the right to redeem at par.

The framework also bans licensed issuers from paying interest on stablecoins and forces providers selling non-MAS-regulated stablecoins to retail customers to provide reserve disclosures and risk warnings — and forbids them from marketing those tokens as “stablecoins” at all.

MAS deputy managing director for financial supervision Ho Hern Shin has said the framework would provide “clear regulatory guardrails for stablecoins that meet high standards of value stability.”

An Industry View

Edward Langley, founder and CEO of Singapore-based crypto payments company Aconomy, says the rules could make digital assets easier for everyday consumers to trust and use.

“Most people who use a crypto card or buy a stablecoin will never read a reserve report, and they shouldn’t have to,” Langley said. “What they need to know is that the token they hold is backed and that they can get their money out. Rules like these put that responsibility on issuers and platforms, where it belongs.”

Langley cautioned that clearer rules will only bring mainstream users into digital assets if the products themselves are also easy to use — a reminder that regulation alone doesn’t create adoption.

Source: GlobeNewswire