Hello all,
This is to inform creditors of a regulatory development in Singapore which will impact ongoing token withdrawals from the Vauld platform pursuant to the Defi Payments Pte Ltd (“Defi Payments”) Scheme of Arrangement dated 27 May 2023 which was sanctioned by the High Court of Singapore on 10 August 2023 (the “Scheme”).
On 6 June 2025, the Monetary Authority of Singapore (“MAS”) issued a media release clarifying the scope of the Digital Token Service Providers (“DTSP”) regime under the Financial Services and Markets Act 2022 (“FSMA”).
The framework to regulate DTSPs under Part 9 of the FSMA will come into operation on 30 June 2025 and the MAS will not be providing a transitional arrangement for DTSPs.
Part 9 of the FSMA provides a DTSP license requirement for, among others, Singapore corporations that carry on a business of providing any type of digital token service outside of Singapore. Such entities will need to be licensed by the MAS to carry out such services from 30 June 2025, a license which will be granted only in rare cases by the MAS.
Defi Payments’s legal counsel (Rajah & Tann) has advised that the digital token-related withdrawal services that Defi Payments is currently providing solely purely for purposes of satisfying Defi Payments’ obligations under the Scheme is unlikely to fall within the scope of “carrying on a business” as detailed in section 137 of the FSMA which would require a DTSP license. This is particularly so where no trading services are offered and there is no revenue or profit being booked from the withdrawal support being provided which is purely to facilitate withdrawals of the distributions made under the Scheme. Furthermore, we are advised that the act of holding digital tokens for purposes of distribution to creditors under the Scheme does not also fall within the description of the conduct that the FSMA intends to regulate.
We have written to the MAS to explain our position and request clarity in respect of the foregoing. In the interim, pending confirmation from the MAS on the need for Defi Payments to obtain a DTSP license to continue withdrawal support and any follow-up actions deemed necessary by the Board of Directors and Scheme Manager, and on the advice of legal counsel, Defi Payments will be suspending token withdrawals indefinitely starting 30 June 2025 to minimize any compliance risk and maintain regulatory standing to the extent possible.
We understand that this development represents a source of significant uncertainty and would like to reassure creditors that the Board and Scheme Manager are working closely to resolve this situation and reactivate token withdrawals. Creditors will be apprised of material updates when available.
If you have any questions or need further assistance, please contact us at [email protected].
Thank you for your patience and understanding.
Kind Regards,
Melcom Copeland
CEO, Defi Payments Pte Ltd.,