MAS outlook on Cryptocurrency

"Singapore’s blockchain legal regime generally takes a technology-agnostic approach, with a focus on appropriately regulating the underlying activity, rather than on blockchain as the enabling technology."

"Central to this regime is the SFA, which is the main legislation governing the capital markets and financial investments sector in Singapore. With many blockchain protocols or applications involving the use of digital tokens carrying contractual and financial rights, the MAS has clarified that offers or issuances of such digital tokens will be regulated under the SFA if they have the characteristics of capital markets products, as defined in the SFA."

"Coupled with the SFA, is the PS Act, under which companies providing account issuance, domestic money transfers, cross-border money transfers, merchant acquisition, electronic money (e-money), digital payment tokens, or money-changing services in Singapore, must obtain a payment-services licence. Together, the definitions of e-money and “digital payment tokens” under the PS Act would cover most cryptocurrencies and stablecoins in the market today, and as such many cryptocurrency firms and exchanges would require a licence."

Source: Chambers and Partners, last revised on 8 May 2022

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If the platform is used to perform any regulated activity under the Securities and Futures Act (Cap. 289), a payment service under the Payment Services Act 2019, or financial advisory services under the Financial Advisers Act (Cap. 110).

"If the platform is used to perform any regulated activity under the Securities and Futures Act (Cap. 289), a payment service under the Payment Services Act 2019, or financial advisory services under the Financial Advisers Act (Cap. 110), including the following:
a. Dealing in capital markets products
b. Advising on corporate finance
c. Fund management
d. Real estate investment trust management
e. Product financing
f. Providing credit rating services
g. Providing custodial services
h. Account issuance service
i. Domestic money transfer service
j. Crossborder money transfer service
k. Merchant acquisition service
l. E-money issuance service
m. Digital payment token service
n. Moneychanging service
o. Financial advisory services"

"Second Schedule of the Securities and Futures Act (Cap. 289)
Part I of the First Schedule, Payment Services Act 2019
Second Schedule of the Financial Advisers Act (Cap. 110)"