Legal Status of Cryptocurrency as an Alternative Payment Instrument in Singapore
DOI:
https://doi.org/10.35335/legal.v15i3.1683Keywords:
Cryptocurrency, Digital Payment Token (DPT), Legal Tender, Monetary Authority of Singapore (MAS), SingaporeAbstract
The development of financial technology has driven the use of cryptocurrencies as digital payment instruments that facilitate fast, efficient, and easy cross-border transactions. Singapore is one of the countries that has accommodated the use of cryptocurrencies as an alternative payment instrument through the Payment Services Act (PSA) 2019, but still stipulates the Singapore Dollar (SGD) as the only legal tender under the Currency Act 1967. This research uses normative legal research methods with a legislative approach and a conceptual approach. The legal materials used consist of primary legal materials in the form of the Constitution of the Republic of Singapore, the Currency Act 1967, the Payment Services Act (PSA) 2019 and its amendments, as well as the MAS Notices and Guidelines. Secondary legal materials in this research are books, scientific journals, and relevant literature. This research finds that the study shows that based on the concept of a legal tender, cryptocurrencies are not legal tender. Even though not a legal tender, cryptocurrency can still be used as an alternative payment instrument in the form of a Digital Payment Token (DPT) based on the Payment Services Act (PSA) 2019. The separation of arrangements between the Currency Act 1967 and the Payment Services Act (PSA) 2019 provides legal certainty, strengthens consumer protection, and maintains the stability of the payment instrument
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