Nature of Smart Contracts

Are smart contracts regulated in Singapore?


Smart Contracts alone are not regulated. However, its applications in cryptocurrency and dispute resolution are.

"While considering blockchain’s inherent risks, the Monetary Authority of Singapore (MAS), Singapore’s financial regulatory authority, has nevertheless maintained a crypto-friendly attitude and provides for a flexible regulatory environment to promote expansion and innovation with regards to this technology... some of the key regulatory developments in Singapore are as follows:

Personal Data Protection Act 2012 (PDPA)
• Payment Services Act (PSA)
• Securities and Futures Act (SFA)
• Proposed "Omnibus Act"

"It appears that both the PSA and the SFA do not regulate the formation or execution of smart contracts, unless they also involve payments using digital payment tokens, or a public offering or issue of digital tokens, respectively. Contract law principles instead appears to be the channel used to deal with such disputes."

Source: Law Gazette, last revised on January 2021


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