The new regulatory framework will govern the operation of non-bankable steblecoins pegged to the Singapore dollar, or Big Ten currencies such as the euro or the US dollar. And, the rules will only apply to stablecoins with a capitalization over $3.7 million.
Ho Hern Shin, the bank’s deputy managing director for financial supervision, said the new rules “will facilitate the use of stablecoins as a trusted digital medium of exchange and as a bridge between fiat and digital asset ecosystems.”
Shin also urged steblecoin issuers to prepare for MAS compliance if they want the token to be labeled as regulated by the agency. This requires compliance with stable-steiblcoin price requirements, maturity dates, and disclosure standards.
There are both reserve management requirements and capital requirements for the issuer of steiblecoins. The regulator has stipulated fines and even jail time for executives of stablecoin companies that claim to regulate their MAS token but fail to comply with the agency’s requirements.
Singapore’s High Court recently equated cryptocurrency ownership with fiat currency ownership and property.