Showing 9 Q&A Sections for "DLT"

  • MAS outlook on Cryptocurrency
    • Singapore
      • What are MAS' views on blockchain and distributed ledger technology (DLT)?
        researched these technologies in Project Ubin, "a collaborative project with the industry to explore the use of Blockchain and Distributed Ledger Technology (DLT) for clearing and settlement of payments and securities." "The project aims to help MAS and the industry better understand the technology and the potential benefits it may bring through practical experimentation.
        FinReg
  • Nature of Smart Contracts
    • Singapore
      • What are the legal risks associated with Smart Contracts?
        "In adverse situations where the contract goes unfulfilled, the traditional option would be to enforce it by going to court or via arbitration. However, due to the high levels of grey areas in the execution of smart contracts, it may cause the plaintiff to incur cost and time spent in legal proceedings. It is almost impossible to code every possible “if-then” scenario into the smart contract and therefore it may not align well with real-world business settings and legal dispute resolution methods
        FinReg
      • What is a Smart Contract? How is blockchain technology involved?
        "A smart contract is self-executing code that carries out a set of instructions, which are then verified on the blockchain. These contracts are trustless, autonomous, decentralized, and transparent; they are irreversible and unmodifiable once deployed." "Within a smart contract, there can be as many stipulations as needed to satisfy the participants that the task will be completed satisfactorily. To establish the terms, participants must determine
        FinReg
      • Types of smart contracts
        "Parties may choose between three different types of smart contracts that run on a spectrum: On one end, the smart contract is essentially written in code on the blockchain and there is no other written agreement in natural language (e.g. English). This type of smart contract is ideal for parties who do not want to involve third-party intermediaries in their transactions, relying solely on the DLT. In the middle of the spectrum is a mixed contract where parties agree that the contractual ter
        FinReg
      • Are smart contracts regulated in Singapore?
        Smart Contracts alone are not regulated. However, its applications in cryptocurrency and dispute resolution are. "While considering blockchain’s inherent risks, the Monetary Authority of Singapore (MAS), Singapore’s financial regulatory authority, has nevertheless maintained a crypto-friendly attitude and provides for a flexible regulatory environment to promote expansion and innovation with regards to this technology... some of the key regulatory developments in Singapore are as follows: • Personal
        FinReg
      • What is the legal status of Smart Contracts? Are they legally binding?
        The law surrounding Smart Contracts is yet to be fully developed, and remains uncertain for the time being. "There are many unresolved legal issues surrounding smart contracts, such as certainty of terms and formality requirements. Some of these legal issues may be settled by the courts, but others need to be addressed by legislation. In Singapore, the Infocomm Media Development Authority has started reviewing the Electronic Transactions Act to assess how it applies to smart contracts and blockchains
        PDLegal LLC
      • How can I implement Smart Contracts in my business?
        Blockchains are decentralised ledgers that use Distributed Ledger Technology (DLT). This means that there is no single user or central administrator that controls the entire blockchain system." "On the Ethereum blockchain, Solidity is a common programming language used to implement smart contracts." Advice
        FinReg
  • Nature of Central Bank Digital Currencies (CBDC)
    • Universal
      • What is a central bank digital currency (CBDC)?
        Federal Reserve, A CBDC is a digital form of central bank money that is widely available to the general public. "Central bank money" refers to money that is a liability of the central bank. In the United States, there are currently two types of central bank money: physical currency issued by the Federal Reserve and digital balances held by commercial banks at the Federal Reserve. While Americans have long held money predominantly in digital form—for example in bank accounts, payment
        FinReg
    • Singapore
      • Introduction to central bank digital currencies (CBDCs)
        A central bank digital currency (CBDC) is a digital version of fiat currency that is usually issued on blockchain or other distributed ledger technology by the central bank of a country or territory. A CBCD is a digital version of fiat currency that is usually issued on blockchain or other distributed ledger technology by the central bank of a country or territory.
        Withers KhattarWong LLP
  • Nature of Decentralised Autonomous Organisations (DAOs)
    • Universal
      • What is the legal status of DAOs?
        "DAOs are not currently recognized as legal entities, creating uncertainty as to the legal rights attributable to a DAO and who bears the legal responsibilities. It is possible that in the abstract a DAO would fall within the categories of a general partnership or joint venture agreement between the participants. In such circumstances, courts will generally infer and impose such a structure on a DAO, in the absence of any formative document or articles. While a DAO might have extensive rules governing
        FinReg
    • Singapore
      • What is a DAO?
        A Decentralized Autonomous Organization (DAO) is a computer program, running on a peer-to-peer network, incorporating governance and decision-making rules. DAOs can be programmed to operate autonomously, without human involvement, or the code can provide for direct, real-time control of the DAO and funds controlled by it. The earliest DAOs are software controlled community organization experiments which seek to re-implement certain aspects of traditional corporate governance, replacing voluntary
        FinReg
      • Are DAOs regulated in Singapore?
        While DAO's are being assessed by regulatory bodies, they are not currently regulated in Singapore. The Regulatory Perspective on DAOs "Providing a regulatory perspective (on an entirely exploratory basis and not in any way representing the views of ACRA), Mr Leong Weng Tat, the Chief Legal Officer of ACRA, named three broad areas worthy of attention. The first is the growth of blockchain – while the technology was initially associated mainly with virtual currencies, today it has expanded to include
        FinReg
  • Project Orchid
    • Singapore
      • What is Project Orchid?
        Project Orchid is a multi-year, multi-phase exploratory project examining the various design and technical aspects pertinent to a retail CBDC system for Singapore, from its functionalities to its interaction with existing payment infrastructures. Though MAS has assessed that there is no urgent need for a retail CBDC in Singapore at this point in time, MAS seeks to facilitate ongoing learning and advance the financial infras
        FinReg
      • What is the PBMs architecture?
        The ledger-based infrastructure could be DLT or non-DLT based. 4. PBM Wallet PBM wallets are used by users to send and receive PBMs and the respective backing digital currencies. They refer to cryptographic wallets which are software programmes that hold users’ private keys that grants them access to PBMs.
        FinReg
  • Crypto mining regulations
    • Singapore
      • Is crypto mining regulated in Singapore?
        "There is no legislation in the Republic of Singapore that specifically relate to the mining of Bitcoin and other cryptos, although mining of cryptocurrency and Bitcoin in Singapore is not illegal. However, as the cost of energy and space in Singapore is relatively high compared to neighboring countries, the prevalence of mining crypto in Singapore has decreased over time. Crypto miners in Singapore must pay taxes on profits derived from the activity. The IRAS states that profits coming from operations
        FinReg
  • Nature of E-money
    • Singapore
      • Central Bank Digital Currencies (CBDC) in Singapore
        A central bank digital currency (CBDC) is a digital version of fiat currency that is usually issued on blockchain or other distributed ledger technology by the central bank of a country or territory. A CBCD is a digital version of fiat currency that is usually issued on blockchain or other distributed ledger technology by the central bank of a country or territory.
        Withers KhattarWong LLPHolland & Marie
  • Nature of crypto assets in the UK
    • United Kingdom
      • What is a "cryptoasset"?
        This category includes utility tokens which can be redeemed for access to a specific product or service that is typically provided using a DLT platform. The category also includes tokens such as Bitcoin, Litecoin and equivalents, and often referred to as ‘cryptocurrencies’, ‘cryptocoins’ or ‘payment tokens’. These tokens are usually decentralised and designed to be used primarily as a medium of exchange.
        FinReg
  • Nature of Decentralised Finance (DeFi)
    • Singapore
      • Is a DeFi lending protocol considered a legal entity?
        "Given the difficulty in identifying a single person to regulate for DeFi applications built on a fully public and decentralised blockchain, we could see the development of innovative supervisory technologies (sometimes referred to as suptech or embedded supervision), which harness blockchain and smart contracts to exercise supervisory functions without relying on the regulation of intermediaries or institutions. Authorities may also find it useful to have a voluntary registration system for DeFi
        FinReg