Stablecoin issuer / redeemer in Singapore
Issues a fiat-pegged stablecoin to the public, operates redemption, and holds reserves backing the float.
Stablecoin issuer is conditionally permitted in Singapore with a local entity, subject to AML obligations and high licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- Yes
- Licensing burden
- High
- Last updated
- 2026-07-13
AML Obligations
- Full MAS AML/CFT obligations under PSN01/PSN02 (amendments effective July 2025) — including customer due diligence (CDD), ongoing monitoring, suspicious transaction reporting (STR) to MAS, and name screening against sanctions lists.
- Issuer must hold an MPI license under the PSA, which carries MAS-supervised AML/CFT compliance program obligations.
- Minimum base capital of S$1 million or 50% of annual operating expenses (whichever higher) as a financial-resource underpinning for AML compliance.
Key Restrictions
- Only SGD-pegged or G10-currency-pegged stablecoins can qualify as 'MAS-regulated stablecoins' (SCS) under the MAS Stablecoin Regulatory Framework. Non-SGD/G10 pegged, multi-asset, or foreign-issued stablecoins remain general DPTs under the PSA (or securities under SFA) and cannot use the SCS label.
- Issuers of MAS-regulated SCS must be limited to stablecoin issuance only — no lending, staking, or unrelated business activities.
- Initial issuance of MAS-regulated SCS must occur from Singapore only (geofenced issuance origination).
- Foreign-issued stablecoins (e.g., USDC, USDT) are permitted for use as general DPTs under the PSA but do not qualify for MAS-regulated SCS status or the associated regulatory trust framework.
- Marketing of digital payment tokens (including general stablecoins) to the general public is restricted — no incentive programs, no public ATMs, and MAS discourages retail speculation.
Key Risks
- SCS framework is finalized (Aug 2023) but not fully in force as of late 2025 — further details/legislation expected (e.g., Nov 2025 announcement), creating regulatory timing risk.
- Only ~20-30 full MPI licenses granted out of 170+ applications — high risk of licensing delay or denial.
- Foreign-issued stablecoins not granted SCS status may face uncertainty: treated as general DPTs, not benefiting from the statutory trust, reserve audit, and redemption-right framework of SCS.
- Algorithmic or under-collateralized stablecoins fall outside the SCS framework entirely — treated as general DPTs with no MAS-regulated status, exposing issuers to enforcement risk.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Stablecoins outside the MAS single-currency stablecoin framework are not prohibited and remain under the digital payment token regime of the Payment Services Act 2019; the 1 Sep 2026 consultation proposes amending PS Act s.2(1) to state that stablecoins fall within digital payment tokens.
Single-currency stablecoins pegged to the Singapore dollar or a G10 currency and issued in Singapore can be labelled "MAS-regulated stablecoins" if their issuer meets the 2023 framework. The licence, first planned as an MPI licence, is now a proposed "stablecoin issuance" class (Sep 2026). The framework is MAS policy and is not yet law: the Payment Services Act 2019 amendments to implement it were put to consultation on 1 Sep 2026 (comments closed 16 Oct 2026).
Stablecoins outside the MAS single-currency framework (pegged to other currencies or assets, or issued outside Singapore) are not prohibited and remain under the DPT regime; a token that is a capital markets product falls under the SFA. MAS proposed in 2026 to recognise some foreign-issued stablecoins.
Under the MAS single-currency stablecoin framework finalised on 15 August 2023, reserve assets must equal at least par value of stablecoins in circulation at all times, valued daily, in the peg currency, as cash, cash equivalents or debt securities of up to three months' residual maturity. The framework is MAS policy and is not yet law: the Payment Services Act 2019 amendments to implement it were put to consultation on 1 Sep 2026 (comments closed 16 Oct 2026).
Under the MAS single-currency stablecoin framework, reserves must be independently attested monthly, published online and filed with MAS, and audited annually; custodians are MAS-licensed or A- rated overseas custodians with an MAS-regulated Singapore branch. The framework is MAS policy and is not yet law: the Payment Services Act 2019 amendments to implement it were put to consultation on 1 Sep 2026 (comments closed 16 Oct 2026).
MAS's 1 Sep 2026 consultation proposes a new "stablecoin issuance" licence class under the Payment Services Act 2019 for issuers of MAS-regulated stablecoins, replacing the 2023 plan to licence them as Major Payment Institutions; Singapore issuers of other stablecoins would need an MPI licence.
Issuers of MAS-regulated stablecoins must hold base capital of the higher of S$1 million or 50% of annual operating expenses, and liquid assets worth the higher of 50% of annual operating expenses or their assessed recovery or wind-down cost. The framework is MAS policy and is not yet law: the Payment Services Act 2019 amendments to implement it were put to consultation on 1 Sep 2026 (comments closed 16 Oct 2026).
Issuers of MAS-regulated stablecoins may not lend, stake, deal in other DPTs or hold stakes in other entities. The 2026 consultation proposes barring other regulated activities except DPT services incidental to their own coin. The framework covers only stablecoins issued in Singapore. The framework is MAS policy and is not yet law: the Payment Services Act 2019 amendments to implement it were put to consultation on 1 Sep 2026 (comments closed 16 Oct 2026).
Under the MAS single-currency stablecoin framework finalised on 15 August 2023, issuers must give holders a direct legal claim to redeem at par and return the par value within five business days of a redemption request. The framework is MAS policy and is not yet law: the Payment Services Act 2019 amendments to implement it were put to consultation on 1 Sep 2026 (comments closed 16 Oct 2026).
Under the MAS single-currency stablecoin framework finalised on 15 August 2023, reserve assets backing MAS-regulated stablecoins must be held in segregated accounts on trust with permitted custodians. The framework is MAS policy and is not yet law: the Payment Services Act 2019 amendments to implement it were put to consultation on 1 Sep 2026 (comments closed 16 Oct 2026).
Crypto service providers in Singapore are licensed under the Payment Services Act 2019; as of 14 October 2026 the MAS directory lists 38 major payment institutions for DPT services and no standard payment institutions. Base capital is S$250,000 for an MPI and S$100,000 for an SPI, which is capped at S$3 million monthly for one service or S$6 million for two or more.
A crypto exchange serving Singapore customers is licensed as a digital payment token service under the Payment Services Act 2019; MAS's 17 January 2022 guidelines bar DPT marketing in public areas, including physical crypto ATMs, and its 23 November 2023 measures bar offering retail customers incentives to trade.
MAS Notice PSN02, issued 2 April 2024 under section 16 of the Financial Services and Markets Act 2022 and in force from 4 April 2024, sets the AML/CFT requirements for Payment Services Act licensees providing a digital payment token service; its latest amendment, dated 30 June 2025, took effect on 1 July 2025.
MAS licenses payment service providers, including DPT service providers, under the Payment Services Act 2019 (standard payment institution, major payment institution and money-changing licences), imposes AML/CFT requirements on DPT licensees through Notice PSN02, and requires DPT licensees to comply with Notice FSM-N13 on technology risk management from 6 November 2024.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- medium
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — a stablecoin issuer can operate in Singapore as a MAS-regulated SCS issuer only if it obtains an MPI license under the PSA, issues an SGD- or G10-pegged stablecoin, maintains 100% reserve backing with monthly attestations, grants par-value redemption within 5 business days, is limited to issuance-only activities, and issues from Singapore; foreign-issued stablecoins are permitted as general DPTs but do not qualify for the SCS regulatory framework.
Questions this verdict aims to answer
- What e-money or banking license is required to issue?
- What reserve composition, segregation, and audit rules apply?
- What redemption rights must be granted to holders?
- Are foreign-issued stablecoins permitted for use locally?