SINGAPORE Law and Practice Contributed by: Kenneth Pereire and Lin YingXin, KGP Legal LLC
information about the issuer, the tokens and associated risks. However, certain exemptions from prospectus requirements may apply, sub - ject to specific conditions. 10.5 Regulation of Blockchain Asset Trading Platforms In Singapore, blockchain asset trading platforms and secondary market trading are regulated by the MAS under the SFA and PSA. Digital asset exchanges must comply with AML/CTF regula - tions, CDD procedures and cybersecurity stand - ards. Intermediaries in secondary market trad - ing, such as brokers and advisers, must hold MAS licences and meet disclosure, market con - duct and investor protection requirements. Peer- to-peer trading platforms also need to adhere to AML/CFT regulations and MAS guidelines to prevent financial crime and fraud. 10.6 Staking Staking services for cryptocurrencies are regu - lated under the PSA and, in some cases, the SFA. Providers offering DPT services must be licensed under the PSA and comply with AML/ CFT rules. Recent PSA amendments require customer funds to be held in statutory trusts and limit staking services for retail customers. If staking arrangements resemble investment contracts, they may fall under the SFA, requiring a Capital Markets Services Licence. These regulations aim to protect investors and ensure transparency while supporting innova - tion. 10.7 Crypto-Related Lending Cryptocurrency lending services in Singapore are regulated under the PSA and potentially the SFA.
Under the PSA, entities must obtain a licence and comply with AML/CFT regulations. Recent amendments also require safeguarding custom - er assets and restrict lending services to retail customers. If the lending involves securities or derivatives, the SFA applies, requiring compli - ance with licensing and disclosure obligations. These regulations aim to protect investors and maintain market integrity. 10.8 Cryptocurrency Derivatives In Singapore, cryptocurrency derivatives are regulated under the SFA. Providers must comply with licensing, reporting and risk management requirements. For example, the SGX and CME Group offer regulated Bitcoin futures contracts, allowing investors to speculate on Bitcoin’s price without owning it. These contracts are subject to MAS regulations, ensuring market integrity and investor protection. 10.9 Decentralised Finance (DeFi) 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 issuance, 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 Markets Ser - vices Licence. Even without intermediaries, DeFi platforms are subject to the same regulations as traditional ones if they engage in regulated activities like trading security tokens or providing financial services. This ensures investor protec - tion, financial integrity, and market stability. 10.10Regulation of Funds Funds investing in blockchain assets in Singa - pore are regulated under the SFA as collective investment schemes (CIS). Fund managers must obtain a CMS licence from MAS and comply with disclosure, transparency, valuation, custody
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