Singapore's MAS proposes strict stablecoin regulations including 100% reserve backing, segregated custody, and yield restrictions for non-licensed issuers.
DeFi & Yields ·
Singapore's Monetary Authority is proposing restrictions on stablecoin issuers that would require 100% reserve backing, segregated custody arrangements, and stress testing protocols, while prohibiting yield payments to token holders. Only entities with MAS licensing would be permitted to market their tokens as "MAS-regulated stablecoins." The regulator is treating stablecoins as payment instruments rather than investment products, with proposed rules including mandatory wind-down procedures for issuers.