Overview of Digital Tokens (DTs)

What kind of digital tokens are regulated/unregulated in Singapore?


  • Regulated: Digital tokens that fall within the definition of “digital payment tokens” under the Payment Services Act 2019.

    "Digital tokens that fall within the definition of “digital payment tokens” under the Payment Services Act 2019, which refer to 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."

    Section 2(1) of the Payment Services Act 2019

    Unregulated: Digital tokens which fall within the definition of “limited purpose digital payment token” under the Payment Services Act 2019.

    Digital tokens which fall within the definition of “limited purpose digital payment token” under the Payment Services Act 2019, which refers to "any non-monetary customer loyalty or reward point, any in-game asset, or any similar digital representation of value that —

    (a) cannot be returned to its issuer, transferred or sold in exchange for money; and

    (b) may only be used —

    (i) in the case of a nonmonetary customer loyalty or reward point — for the payment or part payment of, or in exchange for, goods or services, or both, provided by its issuer or any merchant specified by its issuer; or

    (ii) in the case of an ingame asset — for the payment of, or in exchange for, virtual objects or virtual services within an online game, or any similar thing within, that is part of, or in relation to, an online game."

    Paragraph 3 of the First Schedule, Payment Services Act 2019