MAS Proposes Stablecoin Licensing Under the Payment Services Act
On 1 September 2026 the Monetary Authority of Singapore published draft amendments to the Payment Services Act that would put its 2023 stablecoin framework into law, create a stablecoin issuance licence and give MAS new powers over systemic stablecoins. Comments close on 16 October 2026.
MAS finalised its stablecoin framework in August 2023, but it has operated as a policy position rather than law. This consultation sets out the legislative amendments to implement it, adds positions MAS had not consulted on before, and asks 30 questions. Subsidiary legislation will follow in a later consultation.
What MAS Has Proposed
- A stablecoin issuance licence. Only licence holders could present themselves, or a stablecoin, as "MAS-regulated". Doing so without a licence would be an offence, with fines of up to S$125,000 and/or three years in prison for individuals, and up to S$250,000 in other cases. The licence is not compulsory for issuing a stablecoin, but issuers of non-MAS-regulated stablecoins in Singapore would need a Major Payment Institution licence because they are treated as providing DPT services.
- Scope. MAS's media release describes the framework as covering single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or a G10 currency. The draft Bill leaves the qualifying characteristics to be prescribed later.
- Core requirements. Reserves of at least par value, held as a separate pool for each stablecoin; a right for holders to redeem at par within a prescribed time (the 2023 framework set five business days); and no other regulated business, such as other payment services or banking.
- New positions beyond 2023. A ban on paying interest to holders, stress testing at least quarterly, board-approved recovery and orderly wind-down plans, case-by-case approval for issuing the same stablecoin in several jurisdictions, recognition of foreign-regulated stablecoins as "MAS-recognised stablecoins", and a requirement for banks to issue through a separate non-bank entity.
- Systemic stablecoins. A new Part 2A would let MAS designate any stablecoin, issued in or outside Singapore, whose loss of stability could disrupt Singapore's financial system. MAS would weigh size, holdings in Singapore, links to payment systems and the wider financial system, and substitutability. Designated issuers would face extra governance, recovery and resolution requirements, and MAS could direct DPT service providers to suspend or delist a designated stablecoin that does not comply.
What It Means for AML/CFT
The consultation is mostly about value stability, but it carries several AML/CFT points that issuers and DPT service providers should note:
- Existing requirements apply. Licensed issuers would be subject to the existing AML/CFT standards for DPT service providers and banks — in MAS's words, customer due diligence, the travel rule and screening.
- Trace, freeze or burn. MAS proposes that issuers must have the technical ability to trace, freeze and/or burn stablecoins used for illicit activity, with details to follow in a MAS Notice.
- Under consideration. MAS is seeking views on requiring verified identity for every holder, restricting unhosted wallets, and ongoing monitoring of stablecoins in circulation, such as transaction tracing and screening of wallet addresses in the secondary market.
- DPT service providers. MAS could require any licensed DPT service provider dealing in a stablecoin to report information on it. For non-MAS-regulated stablecoins offered to retail customers, MAS is considering enhanced disclosure on reserves, risk warnings, and a ban on marketing them as "stablecoins".
For the licensing regime that already applies to DPT service providers, see our MAS Payment Services Act DPT licensing guide.
The Regional Picture
Hong Kong is further ahead: its Stablecoins Ordinance commenced in August 2025, and on 10 April 2026 the HKMA granted the first two issuer licences, to Anchorpoint Financial Limited and The Hongkong and Shanghai Banking Corporation Limited. In the EU, MiCA's rules for asset-referenced and e-money tokens have applied since 30 June 2024. Singapore's proposals put an optional "MAS-regulated" label alongside the existing DPT regime rather than requiring every stablecoin issuer to hold the new licence.
Read our coverage of Hong Kong's plans for regulated stablecoin trading.
What to Do Now
- If you plan to issue a stablecoin, or comment on the proposals, respond through MAS's consultation page by 16 October 2026.
- Prospective issuers: check the proposed licensing criteria — a Singapore company with a permanent place of business or registered office in Singapore, an executive director who is a Singapore citizen or permanent resident unless prescribed conditions apply, and fit-and-proper management.
- DPT service providers: list the stablecoins you offer to retail customers and prepare for possible disclosure, risk-warning and reporting requirements.
- Compliance teams: assess your ability to trace transactions and screen wallet addresses for stablecoins, and confirm travel rule handling covers stablecoin transfers.
- Watch for the follow-up consultation on subsidiary legislation, which will set the details MAS has left to be prescribed.
Sources: MAS consultation P015-2026 · MAS media release, 1 September 2026 · MAS media release, 15 August 2023 · HKMA, granting of stablecoin issuer licences. General information, not legal advice.
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