Singapore aims to become a leading crypto city by developing blockchain technology and cryptocurrency services. The government is clarifying crypto tax treatment, funding innovation, and collaborating with industry. Major players like DBS Bank and OCBC Bank have obtained crypto licenses from the Singapore Central Bank. Other sectors adopting blockchain include insurance (automated claims), power (renewable energy certificates), taxation (removing GST on crypto payments), education (issuing tamper-proof certificates), and shipping (digitizing bills of lading). Singapore is working to grow its crypto capabilities while managing risks like money laundering and consumer protection.
2. Agenda
1.Singapore’s grand vision to become a smart city nation
includes crypto services and 5G.
2.How is Singapore pushing the development of crypto?
3.What are the other crypto verticals in Singapore?
4.Questions & Answers
2
8. 2. How is Singapore pushing the development of Crypto?
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9. 9
• We are clarifying the tax
treatment.
• We are encouraging talent
development.
• We are providing grants to
bring in some of this
innovation.
• We are collaborating with
industry to explore the
potential of blockchain
technology through real value
experiments.
• We have been successful in
anchoring high quality
strategic players at the
forefront of digital asset
innovation.
• Money Laundering and terrorism
financing risks
• Technology and cyber risks,
• Consumer protection and potential
financial stability.
• MAS regulates digital assets-related
services and service providers on an
activity basis rather than an entity-
based approach.
• If the digital asset represents a
security such as a share or a bond, it
is regulated under the Securities and
Futures Act, similar to other capital
markets products.
• If the digital asset is used as a means
of payment, then it is regulated as a
digital payment token under the
Payment Services Act.
Singapore Central Bank (MAS) Approach to Crypto System
Grow digital asset capabilities Manage the Risks
"MAS’ Approach to the Crypto Ecosystem" - Summary of Keynote Interview by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, at the Financial Times’ Crypto &
Digital Assets Summit on 27 April 2022
11. 11
Singapore Central Bank (MAS) Projects
Source: www.mas.gov.sg/development/fintech/technologies---blockchain-and-dlt
12. 12
Other financial institutions major projects
The first Singapore bank to
have enabled an end-to-end
cross-border blockchain trade
platform for a global agri-
commodity trading company,
Agrocorp International, for its
supply chain network,
comprising 4,500 farmers,
exporters, traders and end-
customers.
The Blockchain test was done on June
27, 2019 by remitting money from
OCBC bank in Singapore to
UnionBank’s UBX’s i2i platform, a
blockchain network connecting rural
banks in the Philippines via blockchain.
Customers will see significant cost
savings and near real-time transfer, vs
current 5 to 7 days for money to be
transferred.
Source:www.dbs.com/newsroom/Agrocorp_taps_into_DBS_APIs_to_launch_blockchain_trade_pl
atform_for_commodity_trade
Source: https://www.bloomberg.com/news/articles/2019-07-23/blockchain-offers-rural-philippine-
banks-a-way-to-boost-loans
13. 3. What are the other Blockchain verticals in Singapore?
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14. 14
Singapore Insurance Sector
Insurance companies in Singapore are leveraging blockchain
technology, particularly using smart contracts to achieve
transparency in insurance. This technology might help to
eliminate duplicate claims and fraud from insurance sector.
On 18 June 2019, government media and insurance company,
Singapore Press Holdings (SPH), NTUC Income and the
global life insurance company MetLife's innovation centre are
piloting an industry-first initiative to use blockchain to
automate life insurance claims for bereaved families.
Lifechain, developed by MetLife's LumenLab, will allow SPH to
securely encrypt and share data used for obituary placement
with Income to search for a matching life insurance policy.
Should a match be found, SPH will inform family members
within one working day and Lifechain will auto-notify the
insurance company to initiate the claims process.
Source: www.straitstimes.com/business/sph-in-pilot-to-use-blockchain-to-ease-life-insurance-claims
15. 15
Singapore Power Sector
Singapore aims to achieve interconnectivity through
blockchain. On 29th October 2018, the Singapore Power Group
(SPG) rolled one of the world’s first blockchain-based market
that handles renewable energy certificates (RECs).
The project will allow Singapore-based commercial entities to
acquire RECs and this will encourage the production of
renewable energies. The SPG platform will automatically
match buyers with sellers.
Singapore Power stated that blockchain technology would
allow companies to efficiently, securely and seamlessly trade
renewable energy certificates. This will help those companies
to achieve their sustainability targets in their pursuit of going
green.
Source: www.spgroup.com.sg/wcm/connect/spgrp/e3854238-5db1-4f42-8e3d-
3f7fcfa74e32/%5B20181029%5D+Media+Release+-SP+Group+launches+one+of+the+world%27s+first+blockchain-
powered+trading+of+renewable+energy+certificates.pdf?MOD=AJPERES&CVID=
16. 16
Singapore Taxation Agency
The Singaporean government’s taxation agency is
proposing to remove goods and services tax (GST)
from cryptocurrency transactions that function or are
aimed to function as a medium of exchange.
The Inland Revenue Authority of Singapore (IRAS)
published an e-Tax draft guide for treatment on what it
calls the “Digital Payment Tokens,” seeking to exempt
any entity dealing with such digital assets from GST
liabilities.
If the draft guide passes into legislation, starting from
January 1
st
, 2020, these changes will take effect to
better reflect the characteristics of digital payment
tokens.
Source: iras.gov.sg/irashome/uploadedFiles/IRASHome/GST/Draft%20e-Tax%20Guide%20_GST_Digital%20Payment%20Tokens.pdf
17. 17
Singapore Education Sector I
Formally launched in April 2019, OpenCerts is the largest
blockchain-related application of its kind launched globally
to-date. Singapore developed OpenCerts in cooperation
with the OpenCerts Consortium comprising of Government
Technology Agency, Ministry of Education, SkillsFuture
Singapore and a local tertiary institution.
OpenCerts is an open source and Singapore government-
linked blockchain project. OpenCerts provides a platform to
publish educational credentials, allowing students and
employers to verify certificates. The certificates issued on
OpenCerts are designed to be tamper-proof. Once a
certificate is created, its data is converted into a hash – or a
string of random letters and numbers – and stored on
popular decentralized blockchain Ethereum.
Source: www.smartnation.sg/what-is-smart-nation/initiatives/Digital-Government-Services/opencerts
18. 18
Singapore Education Sector II
Source: http://fintechnews.sg/23496/fintech/fintech-and-blockchain-courses-in-singapore/
Source: www.channelnewsasia.com/news/singapore/digital-future-5g-singaporeans-cybersecurity-
iswaran-11709368
On July 10th 2019, Singapore
educational ministry announced on
coding classes for all Singapore
elementary school pupils (aged 10
years old onwards) to be rolled out
from year 2020 onwards.
Tentatively, it’s a 10-hour coding class
for students that aims to cultivate
students with computational thinking
through basic coding.
19. 19
Singapore Maritime Sector
On 8 March 2019, Singapore launched a Blockchain pilot, TradeTrust, to
cut waiting times for container ships and the risk of fraud. The Project will
turn paper-based bills of lading into digital documents that can be shared
and accessed when container ships dock and unload in Singapore.
Source: www.mpa.gov.sg/web/portal/home/media-centre/news-releases/detail/f48f9c64-633a-4143-bec3-83f4c0315036