Nature of DPT service

How will the PS Amendment Bill affect DPT services?

"The MAS intends to regulate the following further activities provided by DPT service providers:

• Transferring or transmitting DPTs from one DPT address or account to another;
• Providing custodian DPT wallets for or on behalf of customers; and
• Inducing or attempting to induce any person to buy or sell DPTs (without the service provider itself coming into possession of money or DPTs)."

The MAS intends to also regulate DPT service providers that are incorporated in Singapore but whose activities are targeted outside Singapore. Currently, the jurisdictional scope of MAS’s regulatory control of the DPT service providers focuses on whether the activity is targeted at Singapore or Singaporeans.

DPT service providers engaging in such activities will need to be licensed under the PSA and will be required to implement anti-money laundering / countering the financing of terrorism measures."

Source: Allen & Overy LLP, last revised on 20 January 2020