Singapore is moving to give stablecoin issuers a dedicated licence under proposed amendments to the Payment Services Act. The Monetary Authority of Singapore (MAS) would allow only licensed issuers that meet its requirements to market their tokens as “MAS-regulated stablecoins.” The proposal covers single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency, with issuers required to maintain reserves equal to at least 100% of outstanding tokens and allow holders to redeem them at par.
The proposed framework would also prohibit issuers from paying interest or other benefits based on stablecoin holdings. MAS wants issuers to conduct quarterly stress tests and maintain systems that can trace, freeze or burn tokens connected to illicit activity. Stablecoins that become systemically important but fail to meet the requirements could face restrictions on their circulation, including possible delisting by licensed digital-payment-token providers. The consultation is open until October 16, 2026, and the proposals are not yet law.
Singapore’s Monetary Authority proposes a new stablecoin issuance license requiring 100% reserves and prohibiting holder interest, per amendments to the Payment Services Act. pic.twitter.com/qNiwQ5OBVc
— Kyledoops (@kyledoops) September 1, 2026
Crypto community sees stablecoin rules as a positive step, but wants more clarity
The initial reaction from the crypto community has been largely positive, with several users describing Singapore’s move as another sign that major financial centres are taking stablecoins seriously. One user called it a “positive step for stablecoin adoption,” arguing that clearer rules could increase confidence and support more responsible growth of the sector. Another described the development as evidence that the “regulatory race around stablecoins” is becoming increasingly interesting as more financial hubs establish their own frameworks.
But some of the discussion is focused on what the proposal could mean beyond Singapore-based issuers. One user pointed out that MAS already introduced a stablecoin framework in 2023, including 1:1 reserve requirements and redemption within five days, and questioned whether the latest amendments could extend the regime to foreign-issued stablecoins circulating in Singapore.
That could become an important issue because Singapore is not operating in isolation. If major stablecoin markets begin applying different requirements to locally issued and foreign-issued tokens, issuers may have to decide where they want to base their operations and which markets they can realistically serve. The response from the crypto community suggests that the headline reserve requirements are only part of the story; how MAS applies the rules to the stablecoin market may matter just as much.
Could Singapore’s rules help stablecoins move beyond crypto trading?
The more important test is whether these rules encourage stablecoins to become useful outside exchanges and crypto wallets. Singapore already has licensed digital-asset businesses including Circle, Coinbase, Paxos, OKX and StraitsX, according to MAS’ financial institutions directory. That gives the country an existing base of companies that could potentially use regulated stablecoins for payments, settlement and transfers.
MAS has been running Project Guardian since 2022, bringing financial institutions, technology companies and regulators together to test tokenized funds, bonds, stablecoins and bank liabilities. A stablecoin that regulators regard as sufficiently safe could therefore become the settlement asset connecting these tokenized markets.
However, the stricter the rules, the more expensive it can become to issue and operate a stablecoin. Quarterly stress tests, reserve management, redemption obligations and systems capable of freezing or burning tokens all require infrastructure and compliance spending. That may favour established financial companies over smaller crypto-native issuers.
What happens next will depend on whether MAS can turn regulation into actual usage. The October 16 consultation deadline is the first milestone, but the bigger test will come when regulated stablecoins begin competing for payment, settlement and tokenization activity across Asia. Singapore already has the financial institutions and digital-asset infrastructure; the question is whether its new rules can turn those advantages into a meaningful stablecoin economy.
Meanwhile, most businesses in Singapore have assigned responsibility for artificial intelligence (AI) systems. Still, far fewer can actually show how those systems arrive at their decisions, according to a new report.
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