SINGAPORE Law and Practice Contributed by: Tju Liang Chua and Ulanda Oon, Drew & Napier LLC
Insolvency, Restructuring and Dissolution Act that apply to all companies. In the context of insolvency proceedings, the asset’s location is often the of utmost importance when establishing sufficient nexus to the relevant jurisdic- tion. The Three Arrows Case provided much needed clarity on ascertaining the location of a digital asset. In that case, the High Court held that the location of a digital asset was best determined by looking at where it was controlled, as digital assets do not have a physi- cal presence and exist as a record in a computer net- work. The residence of the person who controls the private key of the wallet holding the digital assets will therefore be treated as the location of the digital asset. In respect of resolution requirements, the MAS expects licensed DPTSPs to resolve disputes with retail customers through mediation, arbitration, and/ or litigation. Singapore’s Financial Industry Disputes Resolution Centre (FIDReC) is an independent alternative dispute resolution institution that facilitates the resolution of disputes between consumers and FIs through media- tion and adjudication. While the MAS does not require DPTSPs to use FIDReC’s services, it has indicated support for industry associations to come together to discuss membership arrangements with FIDReC. 1.2.6 Industry and Trade Bodies See 1.1.5 Industry and Trade Bodies . 2. Regulation 2.1 Regulators and International Alignment The MAS is Singapore’s central bank, integrated financial regulator, and the primary regulatory body overseeing blockchain and digital assets activities where they touch on financial and PSs. The MAS administers three core statutes relevant to block- chain firms: the SFA, PS Act and FSMA. The MAS’s regulatory approach is technology-agnostic, focusing on regulating the underlying activity rather than the enabling technology, and its risk-based supervisory approach centres on AML/CFT risks, technology and
cyber-related risks, harm to retail investors, stablecoin stability and financial stability risks. Beyond the MAS, IRAS is responsible for the taxation of digital asset activities, and the Gambling Regulatory Authority of Singapore (GRA) may have jurisdiction where digital asset activities involve a chance element. Singapore has actively sought to align with interna- tional regulatory approaches. The PS Act introduced AML/CFT requirements for virtual asset services, in line with FATF standards, and the FSMA was enacted specifically to align Singapore law with the enhanced FATF standards, which require DTSPs to be at least licensed in their jurisdiction of incorporation. Singa- pore became one of the first countries in the region to undergo the fifth round of FATF mutual evalua- tions, fully assessing the effectiveness of its AML/CFT regime in respect of virtual assets. With respect to the Bank for International Settlements, Singapore has collaborated through Project Ubin and Project Dunbar to explore the use of distributed ledg- er technology (DLT) for cross-border payments and CBDCs. Following its March 2025 consultation on implement- ing the Basel Committee on Banking Supervision standards relating to the prudential treatment and disclosure of banks’ crypto-asset exposures, the MAS published its response in October 2025, deferring implementation of the crypto-asset prudential stand- ards to 1 January 2027 or later. In the interim, banks with current or potential crypto-asset exposures must notify and engage the MAS on the appropriate pru- dential treatment, and the MAS expects banks to apply a treatment largely aligned with the provisions set out in the consultation paper. As regards International Organization of Securities Commissions (IOSCO), the MAS has chaired IOSCO’s board-level Fintech Task Force, reflecting Singapore’s leadership in shaping international securities regula- tion for digital assets. 2.2 Crypto-Asset Regulatory Frameworks Singapore adopts an activity-based regulatory approach to digital assets, meaning that the MAS
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