Singapore proposes new stablecoin rules covering foreign issuers and interest - crypto.news

The Monetary Authority of Singapore (MAS) has proposed new rules to extend its stablecoin oversight to foreign issuers and to restrict the payment of interest. Building on a framework introduced last year for single-currency stablecoins pegged to the Singapore dollar or G10 currencies, the new consultation would apply comparable standards to overseas firms that actively market or distribute their tokens to Singapore-based users. These requirements are expected to cover reserve asset management, redemption obligations, and transparency disclosures.

The proposal to ban interest payments is designed to reinforce the distinction between stablecoins as payment instruments and profit-yielding investment products. By doing so, MAS aims to reduce consumer confusion and mitigate risks that could arise from stablecoins being marketed as short-term savings vehicles. The move signals a tightening of regulatory oversight while providing clearer compliance expectations for both domestic and international players.

For the market, this reinforces Singapore’s position as a structured and cautious hub for digital asset innovation. Foreign issuers seeking access to the city-state will need to align with local rules, potentially reshaping competitive dynamics. Observers will watch whether other jurisdictions adopt similar conditions as they evaluate the final scope of the proposal.