On 1 September 2026, the Monetary Authority of Singapore (MAS) published a consultation paper with draft legislative text amending the Payment Services Act 2019 (PS Act). The paper implements the stablecoin regulatory framework MAS published in August 2023 in the form of binding statutory provisions. The public comment period closes on 16 October 2026.
The proposed amendments introduce a new regulatory category within the PS Act for single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency. An SCS issuer must maintain reserve assets equal to at least 100% of the outstanding stablecoin value, held in high-quality liquid instruments prescribed by MAS. The draft prohibits SCS issuers from paying interest on MAS-regulated stablecoins. Only PS Act-licensed issuers may use the label 'MAS-regulated stablecoin'; the draft treats unauthorised use of the label as a breach of the Act. MAS will consult separately on subsidiary legislation, including reserve composition rules and audit requirements, at a later stage.
Stablecoin issuers operating or intending to operate in Singapore must determine whether their tokens meet the single-currency definition and whether to seek a PS Act licence. Issuers that do not obtain a licence cannot represent their tokens as MAS-regulated, which will affect institutional distribution within Singapore and in markets that recognise the MAS label. Crypto asset service providers holding or distributing stablecoins to Singapore customers should review their product terms against the proposed reserve and disclosure requirements.
The consultation does not address multi-currency stablecoins or algorithmic stablecoins; those categories fall outside the proposed scope. MAS has not announced an implementation date for the amended statute. A separate consultation on subsidiary legislation will address reserve composition and audit requirements.
Licentium and its partner network advise stablecoin issuers, crypto exchanges, and payment service providers on MAS licensing and regulatory compliance. Work we undertake includes licensing strategy assessments, Payment Services Act compliance reviews, reserve structuring advice, and regulatory engagement with MAS.