ABLI-SAL Cryptoasset Series – Regulatory Treatment of Cryptoassets (Singapore edition)

ABLI-SAL Cryptoasset Series – Regulatory Treatment of Cryptoassets (Singapore edition)

Author: Sin Yee Koh, Director, Integrity Consulting

Asian Business Law Institute and Singapore Academy of Law

February 2023

Please contact info@abli.asia for queries relating to this publication. There is no hardcopy available.  

Financial services represent one of the most regulated sectors globally, if not the most regulated. Rules exist across jurisdictions about what can and cannot lawfully be done without authorisation or permission from financial services regulators, and how it is done. Those rules have been in existence for decades.

On the other hand, many “use cases” for cryptoassets to date have been in the arena of financial services, as demonstrated by the rise of terms like “decentralised finance”. Like any novel businesses, how cryptoassets fit into the long-standing rules on financial services must be carefully examined before business commences to avoid any unwanted surprises.

This Guide summarises and collates the various regulations in Singapore as a starting point for readers interested in the regulatory treatment of cryptoassets in Singapore.

Table of Contents

Are activities relating to cryptoassets regulated as financial services?

• How may cryptoassets be regulated under the Securities and Futures Act and the Financial Advisers Act?
• How may cryptoassets be regulated under the Payment Services Act?

The Payment Services Act

• E-money issuance service
• Digital payment token services
• Exclusions 

How may cryptoassets be regulated under the Financial Services and Markets Act?

• The Financial Services and Markets Act
• Digital token services

Could cryptoassets be regulated under the Commodity Trading Act?

• The Commodity Trading Act
• Spot commodity trading
• Cryptoassets as commodities

How may derivatives on cryptoassets be regulated?

• What is a derivative generally and in relation to cryptoassets?
• Characteristics, benefits and risks of crypto derivatives
• Why are derivatives contracts regulated?
• How are derivatives contracts in Singapore regulated?

Are there exemptions from regulation?

• Background
• Securities and Futures Act
• Financial Advisers Act
• Commodity Trading Act
• Financial Services and Markets Act

How are central bank digital currencies regulated?

• Central bank digital currencies
• Regulation of CBDCs in Singapore

How are stablecoins regulated?

• Definition and types of stablecoins
• Regulation of stablecoins in Singapore

References

• Cases
• Statutes
• Regulations
• Secondary sources