Digital tokens and customer protections

30 October 2023

Allen & Gledhill Partner Adrian Ang and Associate Alexander Fong contributed a two-part article to Bits & Bytes, a monthly online bulletin hosted on the website of the Centre for Technology, Robotics, Artificial Intelligence and the Law (TRAIL) at the Faculty of Law, National University of Singapore.

The global regulatory environment governing the sale, purchase, exchange, transfer and custody of cryptocurrencies is changing. Along with risks related to money laundering and terrorism financing, the proliferation of trading and speculation in relation to cryptocurrencies the world over has given rise to customer protection concerns and the need to guard against risks arising out of the insolvencies of cryptocurrency service providers and to prevent market abuse and unfair dealing in relation to cryptocurrencies.

The first instalment, “Digital tokens and customer protections (Part 1)”, focuses on regulatory developments in Singapore specific to “cryptocurrencies” (generally referred to as “digital payment tokens” (“DPTs”) under Singapore law), including recent proposals by the Monetary Authority of Singapore (“MAS”) relating to customer protection requirements and the integrity of the DPT market.

The second instalment, “Digital tokens and customer protections - Stablecoins (Part 2)”, delves deeper into the proposals by the MAS on the stablecoin regulatory framework in Singapore, and the operation of the Financial Services and Markets Act 2022.