Singapore Finalizes Stablecoin Rules as MAS Begins Drafting New Law

The Monetary Authority of Singapore (MAS) has finalized key details of its upcoming stablecoin regulatory framework, with Managing Director Chia Der Jiun confirming the drafting of a legislative bill. The MOVE underscores Singapore's push to establish itself as a hub for regulated digital assets amid global instability in the stablecoin market.

MAS's framework, first proposed in August 2023, will require issuers to maintain 100% reserves for circulating stablecoins. "Unregulated stablecoins have a poor track record of maintaining their pegs," Chia noted, highlighting repeated de-pegging events that risk contagion across the ecosystem.

Concurrently, MAS signaled plans to expand central bank digital currency (CBDC) trials, reflecting a dual-track approach to modernizing payments infrastructure. The acceleration aligns with global regulatory trends, including recent stablecoin legislation in other jurisdictions seeking to balance oversight with cross-border interoperability.