MAS proposes new regulatory framework for stablecoins under the Payment Services Act.
The Monetary Authority of Singapore intends to introduce a specific 'MAS-regulated' designation for stablecoins to distinguish them from other digital payment tokens. Proposed requirements for issuers include strict mandates on capital adequacy, value stability, and guaranteed redemption rights for users.
Why it mattersLawyers advising fintech clients must review these proposed mandates on capital and redemption to ensure future compliance and consider submitting feedback by October 16.