MAS Consults on Proposed Stablecoin Amendments to Payment Services Act 2019

Key Takeaways

• The Monetary Authority of Singapore has launched a public consultation proposing legislative amendments to the Payment Services Act 2019 to formally regulate stablecoins, updating its approach in light of market developments since 2023.
• Compliance teams at payment institutions, digital asset firms, and financial institutions engaging with stablecoins should review the proposals closely, as they will shape licensing, reserve, and operational requirements for stablecoin issuers and related entities in Singapore.

Deep Dive

This consultation represents a significant step in Singapore's evolution of digital asset regulation, moving from the initial stablecoin framework introduced in 2023 toward a more codified legislative structure embedded directly in the Payment Services Act 2019. For compliance teams, this signals that stablecoin-related activities—including issuance, custody, and related payment services—will be subject to a more robust and legally binding regulatory regime, rather than guidance-based supervision. Firms currently operating in or planning to enter Singapore's stablecoin market should anticipate enhanced requirements around licensing, capital adequacy, reserve asset management, redemption rights, and disclosure obligations.

The consultation paper and accompanying draft legislative amendments (Annex C) suggest MAS is seeking to close gaps identified since the original 2023 stablecoin framework, potentially addressing issues such as cross-border stablecoin arrangements, non-bank issuer safeguards, and interoperability with existing payment services licensing categories. Compliance teams should carefully review Annex C's draft legislative text, as this will provide the clearest indication of the specific amendments to licensing categories, obligations, and enforcement powers under the Act.

Timing is critical: the consultation opened on September 1, 2026, and closes at 11:59 PM on October 16, 2026, giving interested parties approximately six weeks to respond. Financial institutions, payment service providers, and digital asset businesses with a stake in Singapore's stablecoin ecosystem should treat this as a priority action item, given the relatively short response window.

Recommended actions include: (1) convening a cross-functional working group spanning legal, compliance, product, and treasury functions to assess the proposed amendments' impact; (2) submitting formal feedback to MAS highlighting operational concerns or requesting clarifications; (3) beginning gap analysis against current stablecoin-related operations to prepare for eventual implementation; and (4) monitoring for subsequent MAS guidance or final rules following the consultation period. From a risk perspective, firms that delay engagement risk being caught off-guard by finalized requirements, particularly around licensing transition timelines, reserve asset composition, and redemption guarantees, which could affect business models and operational readiness.

Source: Monetary Authority of Singapore