Singapore to Launch Public Consultation on Stablecoin Legislation This Year
As several foreign jurisdictions have recently passed or implemented laws related to stablecoin issuance, Singapore is planning to launch a public consultation on its own stablecoin legislation later this year. Some stablecoin industry players have expressed that this move will enhance regulatory transparency in the country and boost public confidence in digital assets.
Stablecoins are a category of cryptocurrency whose value is pegged to certain currencies, commodities, or financial instruments, aiming to reduce price volatility. Compared to highly volatile cryptocurrencies like Bitcoin, stablecoins are more commonly used for payments and transactions.
Recently, some regions have been accelerating efforts to promote the adoption of stablecoins. On July 18, U.S. President Donald Trump signed the “Genius Act” to regulate stablecoins, while Hong Kong's “Stablecoin Regulation Ordinance” is set to come into effect in August. Many major stablecoin issuers are planning to apply for licenses.
Market sources indicate that Ant International, the international business arm of Ant Group headquartered in Singapore, is planning to apply for stablecoin licenses in both Hong Kong and Singapore.
In Singapore, the Monetary Authority of Singapore (MAS) introduced a regulatory framework for stablecoin issuance in 2023. However, the framework has yet to be formalized into law.
In response to inquiries from Lianhe Zaobao, an MAS spokesperson said the authority is currently preparing amendments to officially implement the regulatory framework.
“We plan to conduct a public consultation on the proposed amendments later this year. In the meantime, entities considering issuing stablecoins may apply for a Digital Payment Token (DPT) service license under the Payment Services Act.”
To be regulated by MAS, issuance must exceed SGD 5 million and be backed by equivalent assets
According to the stablecoin regulatory framework released by MAS in August 2023, stablecoins are classified into Single-Currency Stablecoins (SCS) and Non-Single-Currency Stablecoins. Only the former are eligible to apply as MAS-regulated stablecoins. Issuers of such stablecoins must meet several criteria, including a minimum issuance volume of SGD 5 million and maintaining reserve assets equivalent in value to the issuance, held in cash or short-term government securities.
