E-briefing: Digital Tokens Regulatory Update
What a year 2018 has been. In his traditional message, the Prime Minister called 2018 a “productive year” and warned of ‘major uncertainties” that the global economy may face in 2019. “But with long term policies in place and a strong team in charge, the Republic has reason to be confident about its future”, he added. As we enter our Bicentennial year since the arrival of Sir Stamford Raffles, with this vision, the Singapore Government continues its resolve to strengthen its regulatory regime and licences on offer.
Update to the MAS Digital Guide to Token Offerings
On 30 November 2018, the Monetary Authority of Singapore (“MAS”) updated the Guide to Digital Token Offerings (“Guide”). Among others, MAS gave further clarity on the regulatory requirements of tokens pegged to a currency (e.g. “stablecoins”), tokenisation of commodities, global offering of tokens, and digital token advisory services.
MAS also published a Checklist and a list of Critical Questions which should be completed before approaching MAS to enquire on a proposed token structure.
Changes to the Payment Services Bill
On 19 November 2018, the Payment Services Bill was moved for First Reading in Parliament and will be due for the second reading at the next available sitting in Parliament.
Among the changes, MAS has broadened the definition of “e-money” and changed the calculation of thresholds for Major Payment Institutions Further it is now clear that digital payment token intermediaries are regulated in certain circumstances. MAS expects to develop subsidiary legislation on anti-money laundering and counter-terrorist financing measures for all licensees under the regime.
For more details on the above updates, please refer to the attached client alert (digital_tokens_regulatory_update.pdf)
2019 looks set to be a “regulatory” year. We look forward to seeing you all throughout the year. May you have the best of health and success in 2019!
For further information contact:
Head, Corporate and Financial Services
Partner, Eversheds Harry Elias
+65 6361 9845
Associate, Eversheds Harry Elias
+65 6361 9335