MAS seeks feedback on proposals regulating value, user protection for stablecoins

The Monetary Authority of Singapore (MAS) is currently soliciting input on proposed legislative amendments to regulate stablecoin issuers and safeguard user interests, as outlined in a consultation paper published on September 1. This proposed framework, dubbed the MAS Single-Currency Stablecoin framework, would only permit MAS-licensed issuers to label their stablecoins as "MAS-regulated stablecoins," facilitating easy identification for users.

Stablecoins not under MAS supervision would be considered Digital Payment Tokens (DPTs) and subject to equivalent consumer protection measures as DPTs. Proposed regulations include mandates for issuers to ensure stablecoin value preservation, capital sufficiency, redemption privileges at original value, and user disclosure. MAS is also seeking public input on broader regulatory policies concerning stablecoin issuance across multiple jurisdictions, foreign-issued stablecoins recognition, enhanced financial stability safeguards, and additional consumer protections. Interested parties may provide their feedback via the MAS website before October 16.