The Monetary Authority of Singapore (MAS) has launched a public consultation to consider incorporating certain stablecoins, co-issued with overseas institutions or regulated abroad, into its domestic regulatory framework, Cointelegraph reported. This move aims to allow stablecoins co-issued by Singaporean and overseas issuers to be recognized as MAS-regulated stablecoins, provided that risks are sufficiently mitigated. Additionally, MAS is considering allowing certain overseas stablecoins, subject to equivalent levels of foreign regulation, to be used for cross-border wholesale transactions. Through amendments to the Payment Services Act (PSA), requirements such as 100% asset backing, minimum capital requirements, 1:1 immediate redeemability, and disclosure obligations will be applied, and interest payments on stablecoins will be prohibited. Issuers will be required to conduct periodic stress tests. MAS will collect feedback until October 16.
