Singapore’s central bank is considering whether to recognize a limited number of foreign-issued stablecoins under proposed changes to the country’s payments law, signaling a possible shift toward greater cross-border integration of digital assets.<\/p>\n\n\n\n
The Monetary Authority of Singapore has opened a consultation on amendments to the Payment Services Act. The proposals would formalize Singapore’s stablecoin framework and introduce additional safeguards for issuers and users.<\/p>\n\n\n\n
The consultation is open for public feedback until Oct. 16.<\/p>\n\n\n\n
MAS is considering recognition for selected foreign-issued stablecoins that operate under regulatory frameworks comparable to Singapore’s rules. The approach would not create automatic recognition for overseas tokens.<\/p>\n\n\n\n
The central bank is particularly examining potential use in cross-border wholesale payments. It is also considering rules for stablecoins jointly issued by Singaporean and foreign entities.<\/p>\n\n\n\n
Under the proposed framework, recognized stablecoins would need to meet strong safeguards covering areas such as reserves, redemption and regulatory oversight. MAS also wants to strengthen financial stability protections through stress testing, recovery planning and orderly wind-down requirements.<\/p>\n\n\n\n
Singapore’s proposal comes as regulators worldwide develop different approaches to foreign stablecoins. Greater regulatory compatibility could make cross-border digital payments easier while maintaining oversight of issuers and reserves.<\/p>\n\n\n\n
The proposed framework would allow only licensed issuers to market their tokens as “MAS-regulated stablecoins.” Issuers would need to maintain sufficient capital and ensure that users can redeem tokens at their original value.<\/p>\n\n\n\n
The rules would also require disclosures about stablecoin arrangements and introduce additional safeguards for customer funds. MAS is considering prohibiting interest payments on regulated stablecoins.<\/p>\n\n\n\n
Stablecoins that fall outside the framework would continue to be treated as digital payment tokens under Singapore’s existing regime. Therefore, foreign recognition would represent a specific regulatory pathway rather than unrestricted access to Singapore’s market.<\/p>\n\n\n\n
The consultation highlights Singapore’s effort to balance financial innovation with consumer protection and financial stability as stablecoins become increasingly important in global payments.<\/p>\n","protected":false},"excerpt":{"rendered":"
Singapore’s central bank is considering whether to recognize a limited number of foreign-issued stablecoins under proposed changes to the country’s payments law, signaling a possible shift toward greater cross-border integration of digital assets. The Monetary Authority of Singapore has opened a consultation on amendments to the Payment Services Act. The proposals would formalize Singapore’s stablecoin […]<\/p>\n","protected":false},"author":13,"featured_media":9555,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[2,43],"tags":[],"class_list":["post-19573","post","type-post","status-publish","format-standard","has-post-thumbnail","category-featured","category-general-news"],"acf":[],"yoast_head":"\n