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Economics, Business & Work 2026-09-09 00:00 UTC edition Story 23 of 24 Gate: passed

Singapore Proposes Strict Licensing Framework for Stablecoin Issuers

The Monetary Authority of Singapore has introduced a new regulatory framework requiring stablecoin issuers to maintain full reserve backing and adhere to strict operational controls.

Status: draft - Built from Synorb manifests, source URLs, claim refs, and MCP-servable evidence.

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Manifests cited
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Not decoration: this is the source-work behind the story, from collected manifests to cited claims.

Singapore Tightens Stablecoin Oversight

The Monetary Authority of Singapore is proposing a new stablecoin licensing framework under the Payment Services Act to enforce strict reserve and operational rules. The plan requires issuers to hold full reserves, bans interest payments, and gives regulators the power to restrict systemic tokens. This move forces digital asset issuers, banks, and exchanges to adjust their compliance models in the jurisdiction.[1][2][3][4]

Under the proposed rules, "Issuers would have to hold reserves equal to at least 100% of par value" at all times. To prevent yield-seeking behavior that could destabilize the tokens, MAS prohibits issuers from paying interest, returns, or any other benefits tied to holding a stablecoin.[2][3]

The framework also introduces strict operational controls and penalties. Issuers must have the technical capability to trace, freeze, and burn stablecoins used for illicit activity. Unauthorized issuance or false claims of MAS regulation carry fines up to SGD 250,000, and continuing offenses after conviction carry a daily fine of up to SGD 25,000.[5][6][7]

Traditional financial institutions face clear boundaries under the proposal. Banks that want to issue MAS-regulated stablecoins must do so through a separate, non-bank entity to prevent contagion risk. Additionally, the regulator can designate any stablecoin as a "Designated Systemic Stablecoin" to restrict its circulation, regardless of where the issuer is based.[8][4]

Key takeaways

  • MAS proposes a dedicated stablecoin issuance license under the Payment Services Act, with criminal penalties for unauthorized issuance or false claims of regulation. 1 source
  • Issuers must maintain 100% reserve backing at all times, provide redemption at par, and are prohibited from paying interest or benefits to holders. 1 source
  • MAS may designate any stablecoin as 'systemic,' granting the regulator power to restrict its circulation in Singapore regardless of its origin. 1 source
  • Banks wishing to issue stablecoins must do so through a separate, non-bank entity to mitigate contagion risk. 1 source
  • Prospective issuers should prioritize building reserve, safeguarding, and redemption models that meet the 100% backing requirement. 1 source
  • Exchanges and payment firms should prepare for new reporting obligations regarding stablecoin volume and redemption data. 1 source

Notable quotes

“Issuers would have to hold reserves equal to at least 100% of par value.”
“MAS could designate any stablecoin... as a Designated Systemic Stablecoin.”

What’s unresolved

  • Specific thresholds for reserve cash/deposit proportions.
  • Detailed rules for tokenized deposits.
  • Specific timeframes for redemption.

Citations

  1. [1] Singapore's Proposed Stablecoin Rules: What the MAS Consultation Means for Issuers, Exchanges, and Banks MAS proposes a dedicated stablecoin issuance license under the Payment Services Act. Manifest ID 1788903057752725508 - TRM Labs Research Result - interrogate via MCP
  2. [2] Singapore's Proposed Stablecoin Rules: What the MAS Consultation Means for Issuers, Exchanges, and Banks Stablecoin issuers must hold reserves equal to at least 100% of par value at all times. Manifest ID 1788903057752725508 - TRM Labs Research Result - interrogate via MCP
  3. [3] Singapore's Proposed Stablecoin Rules: What the MAS Consultation Means for Issuers, Exchanges, and Banks Issuers are prohibited from paying interest, return, or any benefit tied to holding a stablecoin. Manifest ID 1788903057752725508 - TRM Labs Research Result - interrogate via MCP
  4. [4] Singapore's Proposed Stablecoin Rules: What the MAS Consultation Means for Issuers, Exchanges, and Banks MAS can designate any stablecoin as a 'Designated Systemic Stablecoin' to restrict its circulation. Manifest ID 1788903057752725508 - TRM Labs Research Result - interrogate via MCP
  5. [5] Singapore's Proposed Stablecoin Rules: What the MAS Consultation Means for Issuers, Exchanges, and Banks Issuers must have the technical capability to trace, freeze, and burn stablecoins used for illicit activity. Manifest ID 1788903057752725508 - TRM Labs Research Result - interrogate via MCP
  6. [6] Singapore's Proposed Stablecoin Rules: What the MAS Consultation Means for Issuers, Exchanges, and Banks Unauthorized issuance or false claims of MAS regulation carry fines up to SGD 250,000. Manifest ID 1788903057752725508 - TRM Labs Research Result - interrogate via MCP
  7. [7] Singapore's Proposed Stablecoin Rules: What the MAS Consultation Means for Issuers, Exchanges, and Banks Continuing offenses after conviction carry a daily fine of up to SGD 25,000. Manifest ID 1788903057752725508 - TRM Labs Research Result - interrogate via MCP
  8. [8] Singapore's Proposed Stablecoin Rules: What the MAS Consultation Means for Issuers, Exchanges, and Banks Banks must issue MAS-regulated stablecoins through a separate, non-bank entity. Manifest ID 1788903057752725508 - TRM Labs Research Result - interrogate via MCP