Sebastian Sinclair

<div id="highlights-block_6358ebdb74d01" class="highlights">
 <ul>
 <li>One proposal seeks to stop retail investors from buying crypto with credit cards and trading with leverage</li>
 <li>Stablecoin issuers would also be required to enhance anti-money laundering and terror financing controls</li>
 </ul>
 
</div>



The Monetary Authority of Singapore (MAS), the nation&#8217;s central bank, is seeking public feedback on proposed measures to ramp up crypto and stablecoin policy in the wake of Terra&#8217;s spectacular collapse.



In two <a href="https://www.mas.gov.sg/-/media/MAS/News-and-Publications/Consultation-Papers/2022-Proposed-Regulatory-Measures-for-DPT-Services/Consultation-Paper-on-Proposed-Regulatory-Measures-for-Digital-Payment-Token-Services.pdf" target="_blank" rel="noreferrer noopener">consultation papers</a> published Wednesday, MAS is requesting feedback on a range of issues relating to digital assets. It’s the biggest set of proposals the country has conceived since 2019.



MAS, which doubles as Singapore&#8217;s primary financial regulator, is pitching a number of restrictions on digital payment token service providers, namely exchanges, including barring them from offering incentives to retail customers.



That move would bolster existing <a href="https://cms.blockworks.co/singapore-issues-guidelines-targetting-crypto-promotions-to-general-public/" target="_blank" rel="noreferrer noopener">regulations</a> put in place at the beginning of this year, when MAS banned service providers from advertising or promoting to the public via any means except their own websites.



MAS is also seeking comments on proposed restrictions on debt-financed and leveraged crypto transactions in a move that would prohibit providers from accepting credit cards. The bank is even floating an outright ban on leveraged trading for retail customers.



Effective measures to safeguard the private keys and storage of customers&#8217; crypto are being explored with emphasis ensuring that just any one staff has access to client funds.&nbsp;



Singapore’s regulatory tightening follows the saga of now-insolvent crypto hedge fund firm <a href="https://cms.blockworks.co/the-most-expensive-three-arrows-capital-nfts-to-be-liquidated/" target="_blank" rel="noreferrer noopener">Three Arrows Capital</a>, which was headquartered in the island city-state.&nbsp;



It was revealed earlier this year that some of the industry’s largest lenders, including <a href="https://cms.blockworks.co/celsius-exposes-user-information-in-public-court-docs/" target="_blank" rel="noreferrer noopener">Celsius Network</a> and <a href="https://cms.blockworks.co/voyager-to-liquidate-assets-at-auction/" target="_blank" rel="noreferrer noopener">Voyager Digital</a>, had exposure to the fund as it suffered from its own poor investment decisions, including in the <a href="https://cms.blockworks.co/tag/terra/" target="_blank" rel="noreferrer noopener">imploded Terra ecosystem</a>.



As such, MAS is proposing providers implement appropriate risk management controls and segregate customers’ assets in the case of insolvency and hardship for certain businesses.&nbsp;



The appointment of an independent custodian for all service providers will also be debated during a four-week period, starting from now.



<h3 class="wp-block-heading">Singapore central bank could boost local crypto credibility</h3>



In an accompanying stablecoin <a href="https://www.mas.gov.sg/-/media/MAS-Media-Library/publications/consultations/PD/2022/Consultation-on-stablecoin-regulatory-approach_PUBLISHED.pdf" target="_blank" rel="noreferrer noopener">consultation paper</a>, MAS is seeking to increase its powers over single currency-pegged stablecoins (SCS) issued by companies registered within its borders.



MAS intends to carve out a separate category to cater for SCS issuers under the state’s Payment Services Act, requiring licenses for issuers whose token exceeds $5 million.



The rules wouldn&#8217;t necessarily apply to the largest stablecoin companies in the crypto space, such as <a href="https://cms.blockworks.co/tether-says-usdt-stablecoin-now-backed-by-t-bills/" target="_blank" rel="noreferrer noopener">Tether</a> and <a href="https://cms.blockworks.co/circles-new-euro-backed-stablecoin-mimics-usdc/" target="_blank" rel="noreferrer noopener">Circle</a>, as both companies are registered outside Singapore. 



The most prominent stablecoin pegged to the Singaporean dollar, <a href="https://cms.blockworks.co/singapore-strives-to-be-a-home-for-stablecoins-but-challenges-lie-ahead/" target="_blank" rel="noreferrer noopener">XSGD</a>, commands a market capitalization <a href="https://www.coingecko.com/en/coins/xsgd" target="_blank" rel="noreferrer noopener">below</a> $53 million, while both Tether and Circle together oversee more than $110 billion in circulating supply.



MAS is fielding comments on whether there could be grounds to extend its regulatory reach to stablecoins issued elsewhere, although it&#8217;s unclear exactly what that would look like.



In any case, regulated SCS issuers within Singapore will be required to meet existing money laundering and terrorist financing requirements, as well as technology and cyber risk management currently applicable to all regulated payment service providers.



Additionally, the regulator wants regulated banking entities to have enough legal runway to issue their own stablecoins. MAS is further eyeing rules to bolster stablecoin reserve asset treasuries for both institutions and non-bank issuers.



“The additional regulations on stablecoins help to create credibility for a volatile asset class, and currency-based tokens should come under a higher standard given that they have much broader applications for payments,” Chen Zhuling, CEO of Singapore-based staking solutions firm RockX, told Blockworks in an email.



Public feedback on the two proposals is being sought until Dec. 21 of this year. A definitive timeframe has not yet been established on when the measures would be implemented.



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Singapore Central Bank Seeks Feedback on Crypto Leverage Ban

<div id="highlights-block_63242a19ff928" class="highlights">
 <ul>
 <li>The license will allow SBI Digital Markets to advise on corporate finance, dealing in capital markets products and provide custodial services</li>
 <li>MAS’ stance towards firms servicing institutional clients of crypto contrasts its approach to protecting retail investors</li>
 </ul>
 
</div>



A crypto-focused subsidiary of Japanese financial services giant SBI Group has received the regulatory nod to offer its securities to institutional clients in Singapore.



SBI Digital Markets, which operates under Tokyo-based SBI Digital Asset Holdings, said its capital markets services (CMS) license will allow it to advise on corporate finance, deal in capital markets products and provide custodial services.



The Monetary Authority of Singapore (MAS), also the region’s central bank, granted the license following in-principle approval given in May, according to a <a href="https://www.sbidah.com/document/SBI%20DM%20CMS%20License%20Announcement%20EN.pdf" target="_blank" rel="noreferrer noopener">statement</a> on Thursday.



Businesses are required to hold a CMS license to conduct activities regulated under the <a href="https://sso.agc.gov.sg/Act/SFA2001" target="_blank" rel="noreferrer noopener">Securities and Futures Act</a> which, among other areas, includes fund management and product financing.



SBI Digital Markets joins a <a href="https://eservices.mas.gov.sg/fid/institution?sector=Capital%20Markets&amp;category=Capital%20Markets%20Services%20Licensee&amp;activity=Providing%20Custodial%20Services" target="_blank" rel="noreferrer noopener">handful</a> of other companies in Singapore offering custodial services to institutional investors tailored for crypto assets.



While seemingly more receptive to institutional business within the island-city-state, MAS has stiffened its approach to retail crypto investment following the collapse of Terra in May. 



Now-defunct crypto hedge fund firm Three Arrows Capital, which had exposure to the algorithmic stablecoin throughout its demise, had been <a href="https://www.sgpbusiness.com/company/Three-Arrows-Capital-Pte-Ltd" target="_blank" rel="noreferrer noopener">headquartered</a> in Singapore since 2013. Its founders were reportedly planning to relocate primary operations to Dubai earlier this year.



In April, MAS closed a <a href="https://cms.blockworks.co/singapore-crypto-firms-operating-abroad-must-now-be-licensed-under-new-law/" target="_blank" rel="noreferrer noopener">loophole</a> that had allowed virtual asset service providers to offer their business abroad while evading oversight at home.



“Singapore’s financial regulatory system is among the most respected in the world for its rigor and transparency,&#8221; SBI Digital Markets’ CEO Winston Quek said in the statement.



MAS chair Tharman Shanmugaratnam in July proposed introducing customer suitability tests while restricting their use of leverage and credit facilities. At the time, digital asset markets were reeling from cascading liquidations which ultimately spurred bankruptcies of crypto lenders Celsius and Voyager.



The regulator has often voiced its concerns around the new asset class, pointing to extreme periods of volatility and an increase in shady practices as a means to protect mom-and-pop investors.



And while MAS believes those limitations could help alleviate financial harm, Shanmugaratnam conceded late last month that banning retail access to crypto assets <a href="https://cms.blockworks.co/singapore-says-crypto-ban-for-retail-not-likely-to-work/" target="_blank" rel="noreferrer noopener">wouldn’t work</a>.



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blockchain

SBI Group Crypto Arm Wins Singapore Securities License

Shalini Nagarajan

<div id="highlights-block_62c425c6fd5f1" class="highlights">
 <ul>
 <li>Singapore&#8217;s central bank chair says the borderless nature of crypto markets demands global coordination</li>
 <li>The message comes three days after Singapore-registered Three Arrows Capital filed for bankruptcy</li>
 </ul>
 
</div>



Singapore&#8217;s central bank is weighing new consumer protections after turbulent markets choked some of cryptocurrency’s biggest names, many of which are headquartered in the city-state, <a href="https://www.bloomberg.com/news/articles/2022-07-04/singapore-weighs-new-crypto-safeguards-as-industry-stumbles#xj4y7vzkg" target="_blank" rel="noreferrer noopener">reports</a> Bloomberg.



The Monetary Authority of Singapore (MAS), which also serves as the country’s finance regulator, has been “carefully considering” extra consumer safeguards, Chair Tharman Shanmugaratnam said on Monday in a <a href="https://www.mas.gov.sg/news/parliamentary-replies/2022/reply-to-parliamentary-question-on-restrictions-on-cryptocurrency-trading-platforms-to-protect-members-of-public" target="_blank" rel="noreferrer noopener">written reply</a> to a parliamentary question.



“These may include placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies,” he wrote.



Shanmugaratnam highlighted that the borderless nature of crypto markets calls for global regulatory coordination and said MAS is discussing these concerns at an international level.



Three Arrows Capital (3AC), the crypto hedge fund firm recently ordered into <a href="https://cms.blockworks.co/three-arrows-capital-ordered-into-liquidation-by-bvi-court-report/" target="_blank" rel="noreferrer noopener">liquidation</a> by a British Virgin Islands court — and which just filed for <a href="https://cms.blockworks.co/3ac-files-for-bankruptcy-as-co-founders-location-unknown/" target="_blank" rel="noreferrer noopener">Chapter 15 bankruptcy</a> — is headquartered in Singapore. 



Last week, MAS found 3AC <a href="https://cms.blockworks.co/three-arrows-capital-misled-regulators-singapore-mas/" target="_blank" rel="noreferrer noopener">misled</a> the watchdog and skirted local regulations by exceeding limits on assets under management. Singapore-based lender Vauld, backed by Coinbase and Peter Thiel’s Valar Ventures, on Monday imposed a withdrawal <a href="https://cms.blockworks.co/vauld-stops-withdrawals-eyes-restructure-after-users-pull-nearly-200m/" target="_blank" rel="noreferrer noopener">freeze</a> due to financial struggles.



Terraform Labs, the firm behind failed algorithmic stablecoin TerraUSD (UST) and its sister token LUNA, is also registered in Singapore. After UST <a href="https://cms.blockworks.co/terra-collapse-could-spell-end-for-algorithmic-stablecoins/" target="_blank" rel="noreferrer noopener">crashed</a> in May — which caused <a href="https://www.wsj.com/articles/terrausd-crash-led-to-vanished-savings-shattered-dreams-11653649201" target="_blank" rel="noreferrer noopener">steep losses</a> for investors — Singapore’s Deputy Prime Minister Heng Swee Keat had a <a href="https://www.straitstimes.com/tech/tech-news/retail-investors-should-steer-clear-of-cryptocurrencies-singapore-to-approach-tech-with-open-mind-dpm-heng" target="_blank" rel="noreferrer noopener">stern warning</a>. “Retail investors especially should steer clear of cryptocurrencies. We cannot emphasize this enough,” he said at a tech summit.



<h3 class="wp-block-heading">Singapore has already moved to protect crypto investors</h3>



Bloomberg noted the central bank has granted licenses and in-principle approvals to 14 companies handling digital assets in Singapore, including <a href="https://cms.blockworks.co/https-blockworks-co-crypto-com_receives_approval/" target="_blank" rel="noreferrer noopener">Crypto.com</a>, <a href="https://www.businesstimes.com.sg/garage/mas-issues-3-crypto-licence-in-principle-approvals-including-to-cryptocom" target="_blank" rel="noreferrer noopener">Genesis and Sparrow Exchange</a>, out of almost 200 applications. However, the regulator has frequently discouraged retail customers from trading cryptocurrencies. 



In January, the authority <a href="https://www.mas.gov.sg/-/media/MAS-Media-Library/regulation/guidelines/PSO/ps-g02-guidelines-on-provision-of-digital-payment-token-services-to-the-public/Guidelines-on-Provision-of-Digital-Payment-Token-Services-to-the-Public-PS-G02.pdf" target="_blank" rel="noreferrer noopener">barred</a> digital payment token providers (DPTs) from marketing their services to the general public, including in public transport, broadcast media, periodical publications, third-party websites, social media platforms, public events and roadshows. It also told companies physical crypto ATMs are prohibited in public areas.



“Such convenient access may mislead the public to trade in DPTs on impulse, without considering the risks of trading in DPTs,” MAS wrote in a set of guidelines.



Recent events in the crypto market have demonstrated risks for the retail public, the MAS’ latest warning said. Cryptoasset prices have swung sharply lower from last year’s all-time highs along with broader declines in the financial market, while crypto lenders such as <a href="https://cms.blockworks.co/celsius-lending-platform-suspends-withdrawals-and-transfers/" target="_blank" rel="noreferrer noopener">Celsius</a> and <a href="https://cms.blockworks.co/blockfi-inks-250m-credit-deal-with-ftx-to-ease-liquidity-fears/" target="_blank" rel="noreferrer noopener">BlockFi</a> deal with liquidity crises.



Doug Schwenk, CEO of Digital Asset Research, told Blockworks that crypto companies crumbling under pressure shouldn’t be perceived as a sign of overall weakness in the industry.



“I think we&#8217;re going to lose Celsius. We&#8217;re probably going to lose some other players in the market. Three Arrows is unwinding for sure,” he said. “BlockFi is not going to be as big a firm as it used to be. Coinbase has had some layoffs. But that doesn&#8217;t mean that there&#8217;s no role for a firm like Coinbase or BlockFi, or someone will step in and replace what Celsius was doing in time.”



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cryptocurrency

Singapore Mulls Limits on Retail Traders, Leverage After Crypto Collapse

David Canellis

<div id="highlights-block_629694b14c8b7" class="highlights">
 <ul>
 <li>The Monetary Authority of Singapore is partnering with JPMorgan Chase to lead a pilot program exploring DeFi&#8217;s potential</li>
 <li>Binance, Bybit and Crypto.com have all initiated moves into Dubai</li>
 </ul>
 
</div>



The central bank of Singapore is tapping JPMorgan Chase to help lead a new blockchain pilot exploring the potential of DeFi.



The upcoming tests are part of the Monetary Authority of Singapore’s (MAS) Project Guardian initiative, which launched Tuesday.



Project Guardian aims to gauge whether DeFi (decentralized finance) applications running on public blockchains, including Ethereum, can improve wholesale borrowing and lending processes without introducing additional, undue risk. The first step: tokenizing bonds and deposits, with smart contracts powering trade executions.&nbsp;



MAS also enlisted Singaporean multinational bank DBS – one of Asia’s largest financial institutions – alongside local digital asset issuance venture Marketnode to co-lead the program.



Singapore’s Deputy Prime Minister Heng Swee Keat revealed the pilot at the launch of tech event Asia Tech x Singapore Summit on Tuesday. Heng, who also serves as coordinating minister for economic policies, urged retail investors to steer clear of cryptocurrencies — despite the government’s DeFi foray.



According to <a href="https://www.straitstimes.com/tech/tech-news/retail-investors-should-steer-clear-of-cryptocurrencies-singapore-to-approach-tech-with-open-mind-dpm-heng" target="_blank" rel="noreferrer noopener">The Straits Times</a>, Heng said Singapore must “pierce through both the hubris and the veil of suspicion” surrounding digital assets to fully grasp the “potentially transformative underlying technologies.” In other words: “blockchain, not bitcoin.”



The project intends to focus on digital securities, or blockchain-powered tokens backed by traditional financial instruments. Singapore’s central bank, which doubles as the nation’s regulatory authority on finance, will leverage the pilot’s results to inform its crypto policymaking.



<h3 class="wp-block-heading">Crypto bigwigs already left Singapore for Dubai</h3>



While initial indications are that MAS is open to using public (permissionless) blockchains throughout Project Guardian, the tokenized bonds and deposits will be deployed to a private (permissioned) liquidity pool for the purposes of the pilot. There’s potential for digital securities trade on local regulated online exchanges at some point down the line.



Project Guardian diverges from a similar – already live – DeFi initiative managed directly by JPMorgan.&nbsp;



MAS wants to explore permissionless systems; JPMorgan’s Onyx Digital Assets platform is powered by a private blockchain that facilitates the tokenization and trading of US Treasurys within intraday repurchase, or repo, markets — which are employed by hedge funds and other asset managers looking to borrow money at reasonable rates to fund big-ticket orders.&nbsp;



Blockworks <a href="https://cms.blockworks.co/french-banking-giant-bnp-paribas-joins-jpmorgans-onyx-blockchain/" target="_blank" rel="noreferrer noopener">reported</a> last week that French bank BNP Paribas had joined Onyx, which has so far processed more than $300 billion of digital tokens representing US Treasurys since its December 2020 launch.



In any case, it’s not clear whether the potential for regulatory clarity via Project Guardian will be enough to entice a selection of crypto’s biggest names back to Singapore.&nbsp;



Increased regulatory scrutiny and long wait times for crypto exchanges applying for licenses had clouded hopes for Singapore to become a global hub for digital assets, with the localized arm of the global exchange Binance <a href="https://www.forbes.com/sites/robertolsen/2021/12/13/crypto-giant-binance-shuts-down-singapore-trading-platform/?sh=7351e75f682f" target="_blank" rel="noreferrer noopener">shutting down</a> last December.&nbsp;



Binance’s Singapore affiliate supported the trading of just eight cryptocurrencies at the time, a fraction of the 100 digital assets on Binance’s US platform, plus 600-odd tokens on its flagship exchange.



By March, Binance <a href="https://cms.blockworks.co/binance-granted-license-to-operate-in-dubai/" target="_blank" rel="noreferrer noopener">secured</a> regulatory approval to begin operating in Dubai and quickly began looking to hire 100 new staffers in the region. Founder and CEO Changpeng Zhao <a href="https://www.bloomberg.com/news/articles/2021-11-19/binance-chief-zhao-buys-his-first-home-in-pro-crypto-dubai" target="_blank" rel="noreferrer noopener">bought</a> property in Dubai in the months prior.



Crypto derivatives platform Bybit relocated its headquarters from Singapore to Dubai in April. Singapore-based exchange Crypto.com likewise recently <a href="https://www.reuters.com/business/finance/uae-crypto-push-sees-bybit-cryptocom-announce-dubai-offices-2022-03-28/" target="_blank" rel="noreferrer noopener">signaled</a> the company plans to open its first Dubai outpost.



Longtime crypto hedge fund firm Three Arrows Capital in April also pledged to move its headquarters from Singapore to Dubai. Co-founder Su Zhu <a href="https://www.coindesk.com/business/2022/04/28/three-arrows-capital-to-move-headquarters-to-dubai-raise-external-capital/" target="_blank" rel="noreferrer noopener">cited</a> “electric energy” in Dubai’s digital asset industry at the time.



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Singapore Central Bank Ready To Try DeFi After Crypto Giants Leave for Dubai

<div id="highlights-block_628c65de41e10" class="highlights">
 <ul>
 <li>A subsidiary of the Stock Exchange of Thailand as well as global investment manager Hamilton Lane have been onboarded as shareholders following the deal</li>
 <li>United Overseas Bank and the corporate venture capital arm of Thailand&#8217;s fifth-largest bank Krungsri, were also onboarded</li>
 </ul>
 
</div>



Blockchain-based private market exchange ADDX said Tuesday it has raised tens of millions of dollars from some of Asia&#8217;s largest financial institutions in a bid to maintain its position as a top operator within the region.



The Singapore-regulated exchange said in a statement that it had raised $58 million in fresh funding via a pre-Series B funding round from the likes of the Stock Exchange of Thailand subsidiary SET Venture Holding and global investment manager, Hamilton Lane. Hamilton manages roughly $851 billion in assets, according to its <a href="https://www.hamiltonlane.com/" target="_blank" rel="noreferrer noopener">webpage</a>.



Those two, including United Overseas Bank and the corporate venture capital arm of Thailand&#8217;s fifth-largest bank Krungsri, were onboarded as new shareholders.



Founded in 2017, ADDX is a full-services capital markets platform regulated by the Monetary Authority of Singapore (MAS). The exchange seeks to leverage blockchain and smart contract technology for the tokenization and fractionalization of private market opportunities such as pre-IPO equity.



The latest addition of shareholders joins those already listed on the ADDX cap table including the Singapore Exchange, Temasek-owned Heliconia Capital and the Development Bank of Japan, among others.



&#8220;Our corporate clients will be able to tap new fund-raising channels, while our accredited investor clients will gain access to alternative investments in tokenised assets,&#8221; said UOB&#8217;s Head of Group Corporate Banking Leong Yung Chee. &#8220;We look forward to a fruitful journey with ADDX.&#8221;



Funding will go towards scaling efforts, onboarding general partners and future product innovations that will attempt to bridge traditional and digital finance, ADDX said.



As part of the deal, the new shareholders will also partner with ADDX on specific projects that will assist the exchange in expanding into new business verticles, geographies and market segments.



“ADDX is on a mission to democratise the private markets,&#8221; ADDX CEO Oi-Yee Choo said in the statement. &#8220;This Pre-Series B round sets ADDX up strongly for long-term success.&#8221;



ADDX is owned and operated by ICHX Tech Pte Ltd which, in turn, has been recognized by MAS as a market operator and holds a capital markets services license which grants the parent company the right to deal in securities and provide custodial services.



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ADDX

Blockchain-Based Securities Exchange ADDX Gets $58M to Scale Operations

<div id="highlights-block_61e6035743bb3" class="highlights">
 <ul>
 <li>The central bank said Monday providers of crypto should not portray trading in a manner that &#8220;trivializes the high risks of trading&#8221; the new asset class</li>
 <li>Providers are now barred from advertising or promoting their services to the public via any means except through their own websites, social media accounts, or mobile applications</li>
 </ul>
 
</div>



The Monetary Authority of Singapore (MAS) has issued guideline expectations signifying cryptocurrency providers operating within the country should not be allowed to promote their services to the general public.



According to the central bank&#8217;s <a href="https://www.mas.gov.sg/-/media/MAS-Media-Library/regulation/guidelines/PSO/ps-g02-guidelines-on-provision-of-digital-payment-token-services-to-the-public/Guidelines-on-Provision-of-Digital-Payment-Token-Services-to-the-Public-PS-G02.pdf" target="_blank" rel="noreferrer noopener">guidelines</a> released Monday, MAS said digital payment tokens (DPT) providers should not portray trading of crypto in a manner that downplays the risks of trading the new asset class.



As such, regulated providers, including banks and financial institutions are now barred from advertising or promoting their crypto services to the public via any means except through their own websites, social media accounts, or mobile applications.



While Singapore is viewed as a crypto-progressive nation, its regulation, monitoring and control over digital assets is seen by the bank as a necessary step to ensuring public safety. The move against promotional materials to the public marks another case in attempting to balance the two philosophies.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;The trading of cryptocurrencies is highly risky and not suitable for the general public,&#8221; said Loo Siew Yee, MAS&#8217;s Assistant Managing Director (Policy, Payments and Financial Crime), in a <a href="https://www.mas.gov.sg/news/media-releases/2022/mas-issues-guidelines-to-discourage-cryptocurrency-trading-by-general-public" target="_blank" rel="noreferrer noopener">statement</a> on Monday. &#8220;DPT service providers should therefore not portray the trading of DPTs in a manner that trivializes the high risks of trading in DPTs, nor engage in marketing activities that target the general public.”</blockquote>



Providers are also being warned not to engage third parties, such as &#8220;social media influencers&#8221; or &#8220;third-party websites&#8221; to promote their services to the Singaporean public.



MAS said the rules apply to those licensees regulated under the country&#8217;s Payment Services Act — a statute that lays out a framework for payment systems and providers operating within the island-city-state in a bid to disrupt terror financing and money laundering.



The act also applies to all service providers who are required to apply and hold a license for providing crypto services and was updated in 2021 to reflect the industry&#8217;s changing landscape.



The bank said customers of regulated entities &#8220;must be informed of the risks&#8221; of trading in crypto under the country&#8217;s PSN08 Notice on Disclosures and Communications. Though customers are otherwise not subject to any statutory protection for their trading of crypto which is still legal throughout Singapore.



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