SINGAPORE Law and Practice Contributed by: Kenneth Pereire and Lin YingXin, KGP Legal LLC
and restrict lending services to retail customers. If the lending involves securities or derivatives, the SFA applies, requiring compliance with licensing and dis - closure obligations. These regulations aim to protect
must be licensed under the PSA to ensure consumer protection and payment system integrity. Blockchain assets, including security tokens repre - senting real-world assets like stocks or bonds, are regulated under the SFA as capital market products. These tokens must comply with traditional securities regulations, including disclosure and registration, to protect investors. Utility tokens and NFTs, unless they have investment functions or are part of an invest - ment scheme, are generally not regulated by the PSA or SFA. This distinction reflects Singapore’s approach to ensuring a secure, transparent financial environment while adapting to the evolving digital asset landscape. 10.12 NFTs NFTs and NFT platforms in Singapore may fall under the fintech regulatory perimeter depending on their characteristics. NFTs representing ownership of valu - able assets, like tokenised real estate, could be con - sidered financial products under the SFA and require a CMS Licence. Platforms that facilitate payment services, such as cryptocurrency or fiat transactions, may be subject to the PSA and must comply with AML/CFT regulations. Concerns about investor protection and market integ - rity may lead to regulatory intervention, especially for platforms that market NFTs as investment products. Examples include RealT (tokenising real estate) and Play-to-Earn NFT games, which could trigger PSA or SFA compliance. However, collectible NFTs for personal enjoyment, without financial features, may not fall under regulation unless they involve financial transactions or asset trading. 10.13 Stablecoins The MAS framework applies to single-currency sta - blecoins, pegged to the Singapore dollar or a G10 currency, which are issued in Singapore. MAS dis - tinguishes between stablecoins that are pegged to a single fiat currency and issued in Singapore, and other forms of digital payment tokens, reflecting the potential role of stablecoins as a means of payment and settlement within the financial system.
investors and maintain market integrity. 10.8 Cryptocurrency Derivatives
In Singapore, cryptocurrency derivatives are regulated under the SFA. Providers must comply with licens - ing, reporting and risk management requirements. For example, the SGX and CME Group offer regu - lated Bitcoin futures contracts, allowing investors to speculate on Bitcoin’s price without owning it. These contracts are subject to MAS regulations, ensuring In Singapore, DeFi platforms may be regulated under the PSA and SFA, depending on their activities. If they offer digital payment token services or e-money issu - ance, they may need an SPI or MPI licence. If the platform deals with capital markets products, it must comply with the SFA and may require a Capital Mar - kets Services Licence. Even without intermediaries, DeFi platforms are subject to the same regulations as traditional ones if they engage in regulated activi - ties like trading security tokens or providing financial services. This ensures investor protection, financial market integrity and investor protection. 10.9 Decentralised Finance (DeFi) Funds investing in blockchain assets in Singapore are regulated under the SFA as collective investment schemes (CIS). Fund managers must obtain a CMS licence from MAS and comply with disclosure, trans - parency, valuation, custody and AML/CFT regulations. These requirements ensure investor protection, mar - ket stability and effective risk management for funds In Singapore, virtual currencies and blockchain assets are regulated differently based on their characteris - tics and use cases. Virtual currencies like Bitcoin and Ethereum are primarily used for transactions and are regulated under the PSA as digital payment tokens. Providers of related services, such as exchanges, investing in blockchain assets. 10.11 Virtual Currencies integrity, and market stability. 10.10 Regulation of Funds
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