Showing 22 Q&A Sections for "DPT service"

  • Nature of DPT service
    • Singapore
      • Does a DPT wallet service constitute a provision of e-wallet services viz. the provision of account issuance services?
        An account that stores only DPTs is not likely to be a payment account. This is because a payment account must be an account with which the holder can initiate a payment order with or execute a payment transaction.
        PDLegal LLC
      • Digital Payment Token (DPT) service definition
        “digital payment token service” means any of the following services: (a) any service of dealing in digital payment tokens (other than any such service that the Authority may prescribe); (b) any service of facilitating the exchange of digital payment tokens (other than any such service that the Authority may prescribe);
        FinReg
      • What does MAS consider in granting a licence to digital payment token services?
        MAS will continue to closely monitor the rapid developments in the DPT services sector and will ensure that risks are effectively managed as part of the licensing and supervision process.
        FinReg
      • What types of DPT services are regulated under the Payment Services Act?
        Digital payment tokens ("DPTs"), commonly known as cryptocurrencies, are defined in the Payment Services Act 2019 as any digital representation of value that is expressed as a unit and is not denominated in any currency or pegged to any currency by its issuer. DPTs serve as 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. They can be transferred, stored or traded electronically. A person providing services inv
        KGP Legal LLCRajah & Tann Singapore LLP
      • Is the transfer of DPTs considered a DPT service under the PS Act?
        The Payment Services Amendment Act (to be enacted) will expand the definition of DPT service to include the transfer of DPTs "Transfer of DPTs: As bad actors could use entities that facilitate the transfer of DPTs to move or layer the proceeds of illicit assets by transferring value in the form of DPTs from one person to another, the proposed amendments expand the definition of “digital payment token service” to include: Any service of accepting DPTs from one DPT address or account, whethe
        FinReg
      • What are the restrictions on advertising DPT services in Singapore?
        or contradicts the risk disclosures under the PS Act. 2.3 DPT service providers should also not engage third parties, such as social media influencers or third-party websites, to promote their DPT services to the general public in Singapore.
        FinReg
      • 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)."
        FinReg
  • Tax on crypto transactions
    • Singapore
      • Are payments using digital payment tokens (DPTs) for goods and/or services subject to GST?
        Yes. Use of digital payment token as payment 6.1 The use/provision of digital payment tokens as payment for anything (other than for fiat currency or other digital payment tokens) is disregarded as a supply for GST purposes. 6.2 If you are paying digital payment tokens in return for goods and services, you need not account for output tax. 6.3 If you are receiving digital payment tokens in return for your supply of goods or services and you are GST-registered, you
        FinReg
  • Operating or listing on a crypto exchange
    • Singapore
      • What constitutes a "digital payment token exchange"?
        The activities on a DPT exchange would fall under the definition of a DPT service: "digital payment token service” means any of the following services: (a) any service of dealing in digital payment tokens (other than any such service that the Authority may prescribe); (b) any service of facilitating the exchange of digital payment tokens (other than any such service that the Authority may prescribe); "facilitating the exchange of”, in relation
        FinReg
      • What do DPT service providers that carry on a business of dealing in DPTs need to do before offering tokens for sale on DPT exchanges?
        As a brief overview: DPT service providers should assess each token that they intend to offer to determine the nature of the token under MAS' regulatory framework (e.g. security token or payment token); DPT service licensees must identify and assess the ML/TF that may arise in relation to the development of new products, and must undertake the risk assessments prior to the llaunch of such new products; DPT service licensees must also take appropriate measures to manage and mitigate risks, as we
        Millennium Law LLC
      • Are DPT token swaps done on an exchange regulated?
        "The PSA now regulates entities offering any of the following DPT-related services as digital payment token service providers: • Buying or selling DPTs; • Establishing or operating a DPT exchange; and • Participating in and offering financial services related to the offer and/or sale of a DPT by an issuer. • Transfer or transmittal of DPTs from one DPT address to another • Inducing (or attempting to induce) any person to buy or sell DPTs (without the DPT service provider actually accessing any money
        FinReg
  • User protection requirements for DPT services
    • Singapore
      • Are investors of DPTs protected under the Payment Services Act?
        At the moment, MAS does not intend to provide any regulatory safeguards for investments in DPTs, the safety and soundness of DPT service providers or the proper processing of DPT transactions. Providers of DPT services are regulated primarily for ML/TF risks. MAS has issued advisories to warn members of the public of the risks of investing in DPT and may require providers of DPT services to make specified disclosures on the risks of such investments to their customers.
        Millennium Law LLC
      • What are the user protection measures (other than AML/CFT) applicable for DPT service providers?
        At the moment, these are the general measures that DPT service providers have to comply with: 1.2 Under the Payment Services Act (“PS Act”), entities which provide services relating to DPTs are regulated primarily for money laundering and terrorism financing risk, as well as technology risk. Customers of regulated entities must be informed of the risks of trading in DPTs under the PSN08 Notice on Disclosures and Communications bu
        FinReg
  • MAS outlook on Cryptocurrency
    • Singapore
      • What is MAS's view of provision of custodian wallets as a DPT service provider's activity under PS Act?
        Provision of custodian wallets for or on behalf of customers: As entities that offer standalone custodial services for DPTs are exposed to potential ML/TF risks, such entities could be used to safekeep illicit assets or assets for illicit actors (among others). The proposed amendments expand the definition of “digital payment token service” to include the service of safeguarding or administration of: A DPT where the service provider has control over the DPT; or A DPT instrument where the
        FinReg
      • Will MAS regulate brokering DPT transactions under the Payment Services Act?
        "Brokering of DPT transactions (without possession of money or DPTs by the DPT service provider): The proposed amendments expand the definition of “digital payment token service” and include the service of inducing or attempting to induce any person to enter into or to offer to enter into any agreement for or with a view to buying or selling any DPTs in exchange for any money or any other DPT (whether of the same or a different type).
        FinReg
  • Facilitating Crypto Trading
    • Singapore
      • Are DPT token swaps done on an exchange regulated?
        "The PSA now regulates entities offering any of the following DPT-related services as digital payment token service providers: • Buying or selling DPTs; • Establishing or operating a DPT exchange; and • Participating in and offering financial services related to the offer and/or sale of a DPT by an issuer. • Transfer or transmittal of DPTs from one DPT address to another • Inducing (or attempting to induce) any person to buy or sell DPTs (without the DPT service provider actually accessing any money
        FinReg
      • Will MAS regulate brokering DPT transactions under the Payment Services Act?
        "Brokering of DPT transactions (without possession of money or DPTs by the DPT service provider): The proposed amendments expand the definition of “digital payment token service” and include the service of inducing or attempting to induce any person to enter into or to offer to enter into any agreement for or with a view to buying or selling any DPTs in exchange for any money or any other DPT (whether of the same or a different type).
        FinReg
  • AML/CFT for crypto service providers
    • Singapore
      • How do providers of digital payment token (DPT) dealing or exchange services in Singapore meet AML/CFT requirements under the PSA?
        MAS has issued the PS Notice 02 to Payment Services Providers of Digital Payment Token Services. This notice have taken effect from 28 January 2021 and applies to licensees which carry on business of providing digital payment token services. Key requirements under the Notice: i. Identify, assess and understand the ML/TF risks ii. Develop and implement policies, procedures and controls for the effective management of such risks iii.
        PDLegal LLC
      • How does MAS regulate AML/CFT measures for DPT service providers?
        The PS Act requires Digital Payment Token (DPT) intermediaries that buy, sell or facilitate the exchange of DPTs for fiat currencies or other DPTs to identify and verify their customers, monitor transactions, keep records and to report suspicious transactions to the Suspicious Transaction Reporting Office. 31.4 Where DPT service providers also facilitate the transfer of DPT or provide custodian wallet services as part of their business, MAS intends to require that they apply AML/CFT measures to mitigate
        FinReg
      • What are the AML/CFT measures imposed on DPT service providers?
        Where DPT service providers also facilitate the transfer of DPT or provide custodian wallet services as part of their business, MAS intends to require that they apply AML/CFT measures to mitigate the risks posed by such services. A person providing DPT services under the Payment Services Act 2019 is subject to AML/CFT risk mitigation measures.
        Millennium Law LLCRajah & Tann Singapore LLP
      • Customer Due Diligence requirements for DPT service providers
        PSN01 and PSN02 will require the collection of certain customer-specific information, including at least the following— (i) full name, (ii) Unique Identification Number (e.g. customer NRIC or passport number), (iii) residential address (or registered or business address), (iv) date of birth (or establishment, incorporation, or registration), (v) nationality (or place of incorporation or place of registration). Additional identification is required for legal arrangements
        PDLegal LLC
  • Nature of NFTs
    • Singapore
      • Are non-fungible tokens (NFTs) regulated like Digital Payment Tokens under the Payment Service Act?
        The Payment Services Act (PSA) was enacted to regulate cryptocurrency service providers and digital payment tokens in January 2020. However, it is generally considered that PSA does not apply to NFTs because (1) NFTs may fall under the “limited purpose digital payment tokens”, which are exempted from the PSA and (2) NFTs are not an accepted method of payment for goods and services, and thus they are likely not fall under the scope of “digital payment tokens” under the PSA. As
        PDLegal LLC
  • Overview of virtual assets
    • Comparison
      • DPT vs e-money vs stablecoin vs deposits
        E-money vs DPT In general, e-money is a digital representation of fiat currency and includes the monetary value of the fiat currency that it is denominated in. It takes on the monetary value of the fiat currency that is pegged to by its issuer. E-money has been paid in advance and is stored in a payment account and used to pay for any transactions. Under the Payment Services Act 2019, as it stands now, e-money must be pegged to a single currency and not multiple currencies. Money is defined to
        Millennium Law LLCRajah & Tann Singapore LLP
  • Nature of Stablecoins
    • Singapore
      • What are some examples of stablecoins that are considered DPTs by the MAS?
        Entities which provide DPT services will be regulated accordingly under the PS Act. Requirements applicable to entities that provide DPT services, such as the relevant risk disclosure requirements under PSN08, would thus apply. Entities providing services relating to stablecoins should also consider if their activities and products may be caught under other regulatory requirements such as those under the SFA.
        FinReg
  • Liquidity risks associated with cryptocurrency exchange services
    • Singapore
      • What are MAS' proposed regulatory measures to address DPT risks to customers?
        In light of recent cryptocurrency market turmoil, MAS released a consultation paper in October 2022 outlining its proposed regulatory changes for digital payment token (DPT) service providers. In this paper, it sets out observations, policy considerations, and proposed regulatory measures in key areas: (a) consumer access; (b) business conduct; and (c) technology. MAS reaffirms that it aims to develop a responsible digital asset ecosystem but discourages retail cryptocurrency speculation.
        FinReg
  • Offers of Digital Tokens (DTs)
  • Regulations for all Payment Services Providers
    • Singapore
      • What are examples of Payment Services that do not fall within the scope of the PSA?
        a. Limited purpose e-money b. Limited purpose digital payment tokens c. Payment services conducted by licensed or exempt entities regulated under the Securities and Futures Act and the Financial Advisers Act. Some examples of payment service providers exempt from the PSA include the follow: Banks; Merchant banks; Finance companies; Non-bank credit cards or charge card issuers However, it is notable that these entities are regulated under the respective legislation and may have to compl
        Millennium Law LLCPDLegal LLC
      • What are the types of services not regulated as payment services under the Payment Services Act?
        There are some services which are not regulated as payment services under the Payment Services Act. Some examples include: Service providers that process only data (e.g. payment instructions) and not money; Providers of payment instrument aggregation services and data communications platforms; Any payment service that is provided by any person in respect of any limited purpose e-money; Any services of dealing in, or facilitating the exchange of, any limited purpose DPTs; Any payment service
        Millennium Law LLC
  • Regulations for custodian wallets
    • Singapore
      • As a custodian wallet service, must I hold a payment service provider licence?
        If a custodian wallet service provides any of the activities currently regulated under DPT service provider, it will need to be licensed. If a wallet is able to hold both moneys and DPTs, and the payment service provider carries on a business of providing DPT services, account issuance services and e-money issuance services, the payment service provider will need to be licensed to provide any of those services.
        FinReg
  • Nature of Crypto Payment Gateways
    • Singapore
      • As a crypto payment gateway, must I have a payment service provider licence?
        Cryptocurrencies are known as "digital payment tokens" in Singapore. Businesses accepting crypto payments are considered as "digital payment token transfer service". As such, they are likely to require a payment service provider licence. MAS regulates seven payment services under the PS Act: Activity A: Account issuance service Activity B: Domestic money transfer service Activity C: Cross-border money transfer service Activity D: Merch
        FinReg
  • Overview of digital tokens
    • Singapore
      • 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 intend
        KGP Legal LLC
  • Overview of Financial Services
    • Singapore
      • How will the amendments to the Payment Services Act affect blockchain platforms in the future?
        "The changes propose to widen the existing scope of services involving digital payment tokens, domestic money transfer and cross-border money transfers, as well as to expand the powers of the MAS to impose additional licence conditions and user protection measures on certain digital payment token service providers." "Under the amendments, the scope of regulated digital payment token services will be expanded to include: facilitating the transmission of digital payment tokens from one account to
        FinReg
  • Nature of Digital Payment Tokens (DPTs)
    • Singapore
      • Do cryptocurrencies fall under the scope of the Payment Services Act?
        When MAS first drafted the PS Act, there existed first generation digital tokens like Bitcoin and Ether that were used for payments – these were commonly known as “virtual currencies” or “cryptocurrencies”. MAS brought these cryptocurrencies within scope of the Payment Services Act by defining a digital payment token (DPT) to be any digital representation of value (other than any excluded digital representation of value) that – (a) is expressed as a unit; (b) is not denominated in any currency,
        Millennium Law LLC
  • Nature of Cryptocurrencies
    • Singapore
      • Do cryptocurrencies fall under the scope of the Payment Services Act?
        When MAS first drafted the PS Act, there existed first generation digital tokens like Bitcoin and Ether that were used for payments – these were commonly known as “virtual currencies” or “cryptocurrencies”. MAS brought these cryptocurrencies within scope of the Payment Services Act by defining a digital payment token (DPT) to be any digital representation of value (other than any excluded digital representation of value) that – (a) is expressed as a unit; (b) is not denominated in any currency,
        Millennium Law LLC
  • Regulations for fiat on/off-ramps
    • Singapore
      • Do fiat on/off ramps fall under the scope of the PS Act?
        "Currently, MAS regulates service providers dealing in DPTs and facilitating the exchange of DPTs where the service provider comes into possession of moneys or DPTs under the PS Act. These are common business models of DPT service providers that operate in Singapore." "The Bill will expand the scope of the PS Act to empower MAS to regulate service providers of DPTs that facilitate the use of DPTs for payments, and may not possess the moneys or DPTs involved.
        FinReg
  • Payment Service providers: Licence application
    • Singapore
      • Which payment activities are regulated under the PSA and require a licence?
        MAS regulates seven payment services under the PS Act: Activity Type Brief Description Activity A: Account issuance service The service of issuing a payment account or any service relating to any operation required for operating a payment account, such as an e-wallet (including certain multi-purpose stored value cards) or a non-bank issued credit card. Activity B: Domestic money transfer service Providing local funds transfer se
        Millennium Law LLC
      • How does a payment service provider qualify for an exemption or exclusion under the PSA?
        For example, DTIs are not exempted from requirements in the PS Act relating to e-money issuance services, and DPT services. They are therefore treated in the same manner as other licensees in order to maintain a level playing field. Non-bank credit cards or charge cards issuers are also exempted from holding a licence and complying with licensing-related requirements.
        PDLegal LLC
  • Payment services: Account issuance service
    • Singapore
      • How is account issuance regulated under the PS Act different from the previously regulated payment services?
        Money-changing businesses and remittance businesses were previously regulated under the MCRBA, and the holding of stored value facilities where the float was over $30 million was regulated under the PS(O)A. The PS Act continues to regulate money-changing services. Remittance businesses are captured within the scope of cross-border money transfer service. The provision of stored value facilities and stored value are regulated under the PS Act as
        FinReg