Code & Chain · Signal Desk

Singapore's MAS Proposes Opening to Foreign Stablecoin Issuers, but Bans Interest Payments

Original sourceStablecoin InsiderAdditional: SpendNodeAdditional: DeFi Planet

Summary

The Monetary Authority of Singapore (MAS) has issued a public consultation paper (P015-2026) proposing amendments to the Payment Services Act to extend the stablecoin regulatory framework to foreign issuers, allowing eligible foreign stablecoins to gain limited recognition and allowing joint issuan…

Key points

  • For stablecoin issuers and payment firms, this is a key compliance trend in the Asian market.
  • Singapore's stablecoin framework shift to opening to foreign issuers will impact the APAC stablecoin competitive landscape.
  • Issuers must adjust product designs to meet no-interest and high-reserve requirements or face challenges in obtaining a Singapore license.
  • Compared to 2023, which only allowed local issuers, this proposal is a significant change.

Editorial note

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