Add as a preferred source on GoogleSingapore Proposes Interest Ban for MAS-Regulated Stablecoins
The framework would cover locally issued single-currency stablecoins pegged to the Singapore dollar or a G10 currency. Public comments are due Oct. 16.
Singapore is weighing rules that would ban interest on Monetary Authority of Singapore (MAS)-regulated stablecoins and add issuer safeguards, with public comments due Friday, Oct. 16.
The proposal would amend the Payment Services Act 2019. It would cover stablecoins issued locally and pegged to the Singapore dollar or a G10 currency, with each token tied to a single currency. Only licensed issuers could market tokens as MAS-regulated stablecoins.
The framework would allow jointly issued stablecoins from entities registered in Singapore to qualify if their risks are adequately mitigated. MAS is also considering limited recognition for a small number of foreign stablecoins covered by comparable overseas rules, particularly for cross-border wholesale transactions.
Issuers of MAS-regulated stablecoins would face proposed stress-testing requirements, recovery plans and orderly wind-down plans. The consultation period ends Oct. 16.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.