Digital assets represent a revolutionary shift in how value is created, transferred, and managed. These assets include cryptocurrencies, non-fungible tokens (“NFTs”), security tokens, and other blockchain-based assets. Real-world assets are now being digitally fractionalised and tokenised using blockchain technology. As the landscape for digital assets evolves, businesses and investors face unique challenges and opportunities that require expert guidance to navigate effectively.
Our lawyers can offer strategic legal advice to address needs of clients implementing and developing their digital assets – assisting clients in navigating their way through regulations and to achieve full compliance with statutory requirements.
Compliance with Singapore’s regulatory framework is crucial for digital assets.
Key regulations include:
What are NFTs?
They are cryptographic tokens on a blockchain with a unique code and accompanying metadata on the blockchain. NFTs constitute ownership of an underlying asset on the blockchain. No two NFTs are completely alike.
Relevant legal Issues?
NFTs generally are unregulated under prevailing Singapore law as they may not fall within the ambit of applicable securities law, financial advisory law or even the PSA.
A recent Singapore High Court decision that NFTs are “private property” has helped to strengthen the legal rights and protection accorded to NFTs.
Should you be an issuer of NFTs, you are advised to seek the advice of lawyers to structure the NFT sale so as to not fall foul of legislation. Our network of NFT specialist lawyers with extensive experience in various NFT projects in the region can assist you with the successful launch of your NFT project.
Our specialties include:
In 2023, the High Court in ByBit Fintech Ltd recognised cryptocurrencies as a form of property. Courts can thus grant proprietary remedies for cryptocurrencies, and in that case, imposed a constructive trust over the stolen assets such that they were held on trust for the claimant, and the claimant could trace the proceeds of those stolen assets.
Our panel of seasoned virtual currency lawyers and dispute management & resolution specialists at KGP Legal LLC is well-positioned to assist you navigate these and other complex legal issues and ensure your rights are protected, with extensive knowledge of Singapore’s crypto laws, including crucial legislations such as the SFA and PSA.
ICOs have become more and more popular as a means of access to capital. The regulatory aspects of tokenomics are essential to the FinTech regulation in Singapore. Tokens can come in the form of “security” or a “utility” token. Utility tokens are mostly app tokens that allow token holders to access certain features of applications built on the blockchain. Security tokens are regulated and entities that issue or trade with these tokens must obtain a license.
Entities who make offers of security tokens must comply with the requirements of the SFA. Such entities include: Primary platforms that allow users to act as offerors of digital tokens by designing, issuing and offering these tokens, and trading platforms which merely allow users to trade already existing digital tokens.
An Initial Exchange Offering (“IEO”) is a crypto Token Generating Event (“TGE”) on a regulated or licensed cryptocurrency exchange such as Binance Launchpad or Huobi Prime. The crypto exchange manages the launch of the IEO on its platform. This is different from an ICO which is launched on the Issuer’s platform.
We and our network of legal specialists are able to provide professional legal advice and assistance on a successful IEO launch in Singapore and the region, including IEO token terms and conditions, TGE support, Legal and Regulatory structuring, legal opinions on IEO and other related matters.
Email: enquiry@kgplegal.com.sg
Phone: (+65) 6916-1298
Fax: (+65) 6916-1290
KGP Legal LLC is a leading corporate and commercial law firm based in Singapore, with a strong international focus. As a member of the InterAsia Law Alliance, we provide seamless legal assistance in Singapore, Hong Kong, China, and Japan. Our integration within this network enables us to leverage extensive expertise and resources, ensuring comprehensive legal support across multiple jurisdictions.
At KGP Legal LLC, we provide a comprehensive suite of services tailored to the digital assets space:
Aside from advising you on Know Your Customer (“KYC”) requirements that are regulated by the Monetary Authority of Singapore (“MAS”) and anti-money laundering (“AML”) compliance of your Security Token Offerings (“STO”) / Initial Coin Offerings (“ICO”), we would also be able to conduct a comprehensive review of your KYC/ AML procedures and handbooks or draft the same for you.
Our FinTech lawyers can prepare commercial agreements, prospectuses token agreements, and white papers in full compliance with Singapore’s legislation. We are also able to work with lawyers in other jurisdictions to prepare legal documentation that is compliant with the laws of other countries.
We are able to provide guidance on the taxation aspects of ICO/STO in Singapore.
Our panel of experts will advise you on the best options to structure your entity in Singapore to launch Crypto Projects, Blockchain Projects, ICO, Security STO, Metaverse Projects, NFTs, and Decentralised finance (“DeFi”) Projects. This includes assistance with the development and regulatory compliance of DeFi protocols and products, as well as legal advice for creators, platforms, and investors in the NFT ecosystem.
KGP Legal LLC plays a pivotal role in providing comprehensive legal guidance in the digital assets space. Our team of specialised lawyers assists clients in navigating complex regulatory landscapes, ensuring compliance with statutory requirements, and providing strategic advice for successful project launches. From licensing and statutory compliance to tax advising and corporate structuring, we are committed to supporting clients at every stage of their journey in the digital assets space.
We offer guidance on the tax implications of ICO/STO projects, help with the application of tax exemption schemes, and provide advisory services on compliance with Singapore’s tax regulations to optimise your tax position.
Our services for DeFi projects include company incorporation, nominee director services, bank account opening assistance, legal opinions, token creation, regulatory structuring, and compliance advisory to ensure successful project execution.
Legal considerations include intellectual property rights, compliance with local and international laws, appropriate company structuring, and ensuring the NFT sale does not fall foul of securities or payment services regulations.