MAS Moves from Policy to Statute: The 2026 Consultation Paper Explained
The Monetary Authority of Singapore (MAS) has taken its most decisive step yet in transforming the city-state’s stablecoin landscape. On 1 September 2026, the central bank published a comprehensive consultation paper proposing sweeping legislative amendments to the Payment Services Act 2019 (PS Act), effectively converting its 2023 stablecoin policy framework into binding statutory law. The consultation period remains open until 16 October 2026, inviting feedback from issuers, exchanges, banks, and industry stakeholders.
This legislative push signals Singapore’s intent to move beyond regulatory experimentation and establish a definitive legal architecture for single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency.
Three Pathways for Stablecoin Issuance Under the MAS-SCS Framework
The 2026 consultation paper significantly expands the scope of the original MAS-SCS framework. Where the 2022 and 2023 proposals focused narrowly on locally issued stablecoins, the current draft introduces three distinct categories of stablecoins eligible for regulatory recognition:
- Domestic issuance — Stablecoins issued and regulated entirely within Singapore under the MAS-SCS framework
- Multi-jurisdictional issuance — Stablecoins issued across multiple jurisdictions, including Singapore, where the Singapore entity holds a stablecoin issuance licence
- Foreign issuance — Stablecoins issued and regulated outside Singapore that may qualify as “MAS-recognised stablecoins” under a new recognition regime
MAS has indicated it will adopt a selective and risk-based approach, assessing applications holistically based on financial soundness, business viability, and operational track record.
Key Requirements: 100% Reserve Backing and Interest Prohibition
The proposed amendments introduce several stringent requirements that place Singapore’s regime among the most rigorous globally. Issuers must maintain reserve assets equal to at least 100% of the par value of all stablecoins in circulation, held in high-quality liquid instruments prescribed by MAS. These reserves must be segregated in trust accounts, ensuring clear separation from the issuer’s own assets.
The draft legislation also prohibits stablecoin issuers from paying interest, return, or any benefit tied to holding a MAS-regulated stablecoin — a provision that aligns Singapore’s approach with emerging regulatory frameworks in the United States and European Union.
Criminal Penalties for Unauthorised Use of the “MAS-Regulated” Label
One of the most significant enforcement mechanisms in the proposed framework is the criminalisation of unauthorised use of the “MAS-regulated stablecoin” label. Under the draft amendments, holding out a token as MAS-regulated without a licence — or falsely claiming a token or entity is MAS-regulated — would constitute a criminal offence carrying fines of up to SGD 250,000, with an additional fine of up to SGD 25,000 for each day the offence continues after conviction.
This provision is designed to create a genuine “quality mark” that consumers and institutional investors can trust, distinguishing genuinely regulated stablecoins from unregulated alternatives circulating in the market.
Real-World Context: Global Race for Stablecoin Infrastructure
Singapore’s legislative push comes amid intensifying global competition to establish stablecoin regulatory primacy. Hong Kong implemented its dedicated stablecoin licensing regime in 2025, with the Hong Kong Monetary Authority issuing its first licences to HSBC and Standard Chartered-backed Anchorpoint Financial in April 2026. In the United States, the GENIUS Act has provided a federal framework, while the European Union’s Markets in Crypto-Assets (MiCA) regulation has been in force since 2024.
MAS Deputy Managing Director Ho Hern Shin emphasised that the framework “aims to facilitate the use of stablecoins as a credible digital medium of exchange, and as a bridge between the fiat and digital asset ecosystems”. For issuers comparing jurisdictions, Singapore’s reputation for regulatory rigor remains intact, but the regime is still in draft form — no stablecoin issuance licences are yet available for application.
The MAS consultation paper is available for public review, with feedback accepted until 16 October 2026.
