The Global Stablecoin: Stablecoin Regulatory Framework in Singapore 

By: Lucas Nicolet-Serra, Edward Bennett, and Judith Rinearson

With the passage of the GENIUS Act in the US, there has been an increased focus on how different countries have approached Stablecoin regulation. This blog examines stablecoin regulation in Singapore.

On 15 August 2023, the Monetary Authority of Singapore (MAS) announced plans for a new Stablecoin Issuance Service under the Payment Services Act (PSA). This new Stablecoin Regulatory Framework (SCS Framework) aims to bring trust and clarity to stablecoins issued in Singapore.

What Stablecoins Are Covered?

• Only single-currency stablecoins (SCS) pegged to the Singapore Dollar (SGD) or a G10 currency (e.g. USD, EUR, JPY).
• Issuers must be based in Singapore.
• Stablecoins pegged to other assets, or issued outside Singapore, will remain under the current digital payment token (DPT) rules.

Key Requirements for “MAS-Regulated Stablecoins”

To be recognised and labelled as an MAS-Regulated Stablecoin, issuers will need to meet strict conditions:

1. Reserve Asset–Reserve assets must always equal 100% of coins in circulation, with monthly independent checks and annual audits.
2. Segregation/Custody of Reserve Assets–Assets must be held separately with approved custodians.
3. Base Capital/Solvency–Minimum S$1 million or 50% of annual operating costs, whichever is higher.
4. Redemption at par–Users can redeem at par value within five business days.
5. Value stability–Issuers must publish a clear whitepaper with details on the coin’s stabilisation mechanism, risks, and audit results.
6. Disclosure–Issuers will have to provide appropriate disclosures to users through a whitepaper on stablecoins’ value stabilising mechanism, technology, risks, rights, and the audit results of reserve assets.
7. Business Restrictions–Issuers can only issue stablecoins; no lending, staking, or unrelated ventures.
8. Singapore-only issuance–At the start, MAS-regulated stablecoins must be issued solely out of Singapore.

Why It Matters

• This framework is not yet in force—MAS will release further details, legislation, and transition timelines later.
• Importantly, it applies only to SGD and G10-pegged stablecoins. Other tokens will continue under Singapore’s DPT regime, or even under the Securities and Futures Act (SFA) if treated as securities.

The bottom line: MAS wants to make stablecoins safer, but only those fully backed and pegged to SGD or a major global currency—and issued in Singapore—will qualify as “MAS-Regulated Stablecoins.”

For more information about Singapore’s Stablecoin regulatory framework, feel free to contact the authors, who are based in Singapore.