Nature of Decentralised Exchanges (DEX)
Are decentralised crypto exchanges regulated?
There are no regulations specifically regulating decentralised finance (DeFi) platforms that match borrowers and lenders of digital assets. However, general laws on the conduct of lending as a business will apply (such as the Moneylenders Act and the Banking Act).
It should be noted that PS Act licence holders are prohibited from lending to individuals. This limits PS Act licence holders to conducting payment-related activities only, and prevents them from engage in banking or other regulated activities, such as consumer lending.
Moreover, PS Act licence holders that provide an e-money issuance service are specifically prohibited from on-lending customer money or using customer money to materially finance their business activities.