Singapore reviews approval of some overseas stablecoins

Singapore’s Monetary Authority of Singapore (MAS) has launched a public consultation on bringing some stablecoins jointly issued with overseas institutions or regulated abroad into its domestic regulatory framework, Cointelegraph reported. Under the proposal, stablecoins jointly issued by Singaporean and overseas issuers could be recognized as MAS-regulated stablecoins if risks are sufficiently mitigated. MAS is also considering recognizing some overseas stablecoins subject to equivalent regulation and allowing them to be used for cross-border wholesale transactions. Through revisions to the Payment Services Act, the framework would apply requirements including 100% asset backing, minimum capital thresholds, immediate one-to-one redemption, and disclosure obligations, while banning interest payments on stablecoins. Issuers would also be required to conduct regular stress tests. MAS plans to collect feedback through Oct. 16.