Singapore weighs recognizing some foreign-issued stablecoins
MAS is rethinking its 2023 rule that stablecoins must be issued only in Singapore to qualify for its framework. A new consultation proposes allowing some jointly issued stablecoins from a Singapore issuer and a foreign issuer to be labeled “MAS-regulated stablecoins” if risks are adequately controlled. MAS is also considering a small number of foreign-issued stablecoins regulated under comparable overseas regimes, mainly for cross-border wholesale use. The consultation also seeks to put the 2023 stablecoin framework into law through amendments to the Payment Services Act. The framework covers single-currency stablecoins pegged to the Singapore dollar or a G10 currency and requires reserve backing, capital, redemption at par, and disclosures. Other proposed safeguards include banning interest payments, requiring stress tests and wind-down plans, and protecting customer funds received before issuance. Public comments are open until Oct. 16.
