Singapore Moves to Codify Stablecoin Rules, Opens Public Consultation

Singapore has begun formal steps to turn its stablecoin regulatory framework into law, joining a broader push by major economies to enact similar legislation.

The Monetary Authority of Singapore on Sept. 1 released proposed amendments to the Payment Services Act and opened a public consultation, Bloomberg reported. The changes would establish a legal basis for regulating stablecoins issued in Singapore.

MAS first announced its stablecoin regulatory framework in 2022, but a timetable for legislation has not been set. The latest proposal would bar interest payments on regulated stablecoins, mandate stress testing, and require issuers to prepare recovery and orderly wind-down plans. Overseas stablecoin issuers could also apply for MAS recognition if they are subject to equivalent regulation in their home jurisdictions.

In the consultation statement, Ho Hern Shin, MAS deputy managing director for financial supervision, said the framework aims to support stablecoins as a reliable digital medium of exchange and as a bridge between fiat currencies and the digital-asset ecosystem.

Singapore's move comes as the global race to legislate stablecoins accelerates. The US passed the GENIUS Act, a dedicated stablecoin bill, last year, while the European Union has been enforcing its Markets in Crypto-Assets regulation since 2024. In Asia, Hong Kong introduced a dedicated licensing regime for stablecoins last year and in April granted its first license to Anchorpoint Financial, backed by HSBC Holdings Plc and Standard Chartered Plc. Japan introduced a legal framework for stablecoins centered on banks, trust companies and registered fund transfer service providers in 2022. South Korea is also pursuing related legislation.

Growth in the stablecoin market has slowed somewhat this year. Blockchain data platform Artemis said the combined supply of six major dollar-pegged stablecoins stood at $277 billion as of August, little changed from October last year.