Singapore -- Stablecoin Regulations Regulatory Overview

Singapore's stablecoin regulatory framework, finalized by the Monetary Authority of Singapore (MAS) in August 2023, targets single-currency stablecoins (SCS) pegged to the Singapore Dollar (SGD) or G10 currencies (e.g., USD, EUR, JPY) issued in Singapore, operating on an opt-in basis under the Payment Services Act (PSA). [1][2][3][4][6] Stablecoins not meeting these criteria fall under existing digital payment token (DPT) rules or the Securities and Futures Act (SFA) if classified as securities.[1][2][5]

Classification

• General stablecoins are classified as DPTs under the PSA.[2][4]
• SCS pegged to SGD or G10 currencies, issued in Singapore, can qualify as MAS-regulated stablecoins if issuers meet strict requirements, including full reserve backing and a Major Payment Institution (MPI) license; they are distinguished from other DPTs for enhanced trust.[1][2][3][4]
• Non-SGD/G10 pegged, multi-asset, or foreign-issued stablecoins remain DPTs or potential securities under SFA.[1][3][5]

Reserve Requirements

• Issuers of MAS-regulated SCS must maintain reserve assets equal to at least 100% of coins in circulation, using high-quality liquid assets (e.g., cash, deposits, government securities) denominated in the peg currency.[1][2][3]
• Monthly independent attestations and annual audits are required; reserves must be segregated with approved custodians.[1][2]

Issuer Licensing

• Issuers need a Payment Services license (MPI) under the PSA to issue MAS-regulated SCS.[2][4]
• Minimum base capital: S$1 million or 50% of annual operating expenses, whichever higher.[1][3]
• Restrictions: Issuers limited to stablecoin issuance only (no lending, staking, or unrelated activities); initial issuance from Singapore only.[1][2]

Redemption Rights

• Holders of MAS-regulated SCS have statutory redemption rights at par value (1:1 with peg currency) within 5 business days.[2]
• Customer assets held in statutory trust for protection.[2]

Algorithmic Stablecoin Rules

• No specific provisions mentioned; algorithmic stablecoins (not fully backed by reserves) fall outside the SCS framework and are treated as general DPTs under PSA, without MAS-regulated status.[1][3][5]

CBDC Interaction

• Search results provide no details on interactions between stablecoins and Singapore's CBDC (e.g., Project Orchid); stablecoins are regulated separately to complement fiat stability without direct CBDC linkage noted.[1-8]

Key Legislation and References

• Payment Services Act (PSA): Core legislation for DPT services and licensing.[2][4]
• MAS Stablecoin Regulatory Framework (SCS Framework): Finalized August 15, 2023; not fully in force as of late 2025, with further details/legislation expected (e.g., November 2025 announcement).[1][2][4][6]
  • Official MAS announcement: https://www.mas.gov.sg/news/media-releases/2023/mas-finalises-stablecoin-regulatory-framework [6]
  • Consultation paper: https://www.mas.gov.sg/publications/consultations/2022/consultation-paper-on-proposed-regulatory-approach-for-stablecoin-related-activities [8]

Note: Framework is opt-in and applies only to specified SCS; misuse of "MAS-regulated" label incurs penalties.[1][4] As of search data (up to 2025), full implementation details pending from MAS.[1][2][4]