Nature of Digital Payment Tokens (DPTs)

What is a Digital Payment Token (DPT)?


  • According to MAS (Notices)
    last revised 28 June 2021

    “digital payment token” means any digital representation of value (other than an excluded digital representation of value) that

    (a) is expressed as a unit;
    (b) is not denominated in any currency, and is not pegged by its issuer to any currency;
    (c) is, or is intended to be, a medium of exchange accepted by the public, or a section of the public, as payment for goods or services or for the discharge of a debt;
    (d) can be transferred, stored or traded electronically; and
    (e) satisfies such other characteristics as the Authority may prescribe;

    Digital payment tokens are more commonly known as cryptocurrencies. 


     

    A “digital payment token”, as defined under section 2 of the PSA, is “any digital representation of value (other than an excluded digital representation of value) that –

    (a) is expressed as a unit;

    (b) is not denominated in any currency, and is not pegged by its issuer to any currency;

    (c) is, or is intended to be, a medium of exchange accepted by the public, or a section of the public, as payment for goods or services or for the discharge of a debt;

    (d) can be transferred, stored or traded electronically; and

    (e) satisfies such other characteristics as the Authority may prescribe.

FinReg business tip

Digital payment tokens are more commonly known as cryptocurrencies. DPTs fall under the Payment Services Act (PSA), while tokens that fall under the definition of Securities falls under the Securities and Futures Act (SFA).