According to CoinMeta, Singapore’s financial regulatory authorities have proposed amendments to the Payment Services Act to prohibit stablecoins from paying interest to investors. The new regulations require issuers to maintain at least 100% of their assets equal to all tokens in circulation and to manage these assets separately from their own funds. In their consultation document, the regulators stated that stablecoins should be used for payments, not as investment products or to generate returns similar to those of bank savings accounts. The new rules will completely ban stablecoin issuers from paying interest or other benefits related to customers’ holdings of stablecoins. Singapore’s approach is in line with that of other regions; the US’s Genius Act and the European Union’s regulations on market crypto assets (MiCA) also prohibit stablecoins from paying interest.