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The Monetary Authority of Singapore requires StraitsX to provide certain notices and disclosures to you as a customer of StraitsX. These disclosures include important regulatory information, as well as certain risk warnings that StraitsX believes are crucial for you to understand before using any of our services.
Please review these disclosures carefully to ensure you are fully aware of the risks involved and the safeguards in place when engaging with StraitsX Services. The terms used in these disclosures shall have the same meanings as defined in the upcoming new version of the StraitsX Terms and Conditions (“Straits T&Cs”).
1.1. Before you: (a) pay StraitsX Payment Services Pte Ltd (i.e. SPSPL) any money or digital payment token; or (b) pay a third party any money or digital payment token under an arrangement by SPSPL, you should be aware of the following.
1.1.1. SPSPL is licensed by the Monetary Authority of Singapore to provide digital payment token services. Please note that this does not mean you will be able to recover all the money or digital payment tokens you paid to SPSPL or any other third party referred to above, if SPSPL’s or the third party’s business fails.
1.1.2. You should be aware that the Monetary Authority of Singapore does not supervise or regulate SPSPL for the provision of unregulated services. This includes any service of trading digital payment token derivatives such as futures.
1.1.3. You should not transact in the digital payment token if you are not familiar with this digital payment token. This includes how the digital payment token is created, and how the digital payment token you intend to transact is transferred or held by SPSPL.
1.1.4. You should be aware that the value of digital payment tokens may fluctuate greatly. You should buy digital payment tokens only if you are prepared to accept the risk of losing all of the money you put into such tokens.
1.1.5. You should be aware that SPSPL, as part of its licence to provide digital payment token services, may offer services related to digital payment tokens which are promoted as having a stable value, commonly known as “stablecoin”.
2.1. Xfers Pte Ltd (i.e. XPL) is licensed by the Monetary Authority of Singapore to provide e-money issuance services. Please note that this does not mean you will be able to recover all the money you paid to XPL if XPL’s business fails.
Reserve backing for XSGD and XUSD
3.1. In accordance with the upcoming stablecoin regime designed by the Monetary Authority of Singapore and/or regulatory requirements imposed by them, StraitsX SGD Issuance Pte Ltd (i.e. STX XSGD) and StraitsX USD Issuance Pte Ltd(i.e. STX XUSD) are required to ensure that XSGD and XUSD are fully backed by Reserve Assets equivalent to at least 100% of the par value of all outstanding StraitsX Tokens in circulation at all times. These Reserve Assets are held by STX XSGD (for XSGD) and STX XUSD (for XUSD) in segregated accounts belonging to and on trust for the XSGD and XUSD token-holders, separate from the assets of STX XSGD and STX XUSD. The composition of the Reserve Assets is within the sole control and at the sole and absolute discretion of STX XSGD and STX XUSD, and these Reserve Assets may be held in interest-bearing accounts or other yield-generating assets or instruments. The XSGD and XUSD token-holders are not entitled to any interest or other returns earned by the Reserve Assets.
3.2. In this regard, STX XSGD and STX XUSD will be holding the Reserve Assets on behalf of XSGD and XUSD token-holders in a trust account opened with CIMB Bank Berhad Singapore Branch(“CIMB”) and DBS Bank Ltd (“DBS”), distinguishable and maintained separately from any other account in which we may deposit our own assets.
3.3. You acknowledge that maintaining the Reserve Assets in a trust account on behalf of XSGD and XUSD token-holders does not guarantee that CIMB and DBS can meet all claims related to redemptions of XSGD and XUSD. Deposit in money to back the XSGD and XUSD in circulation into such trust accounts also does not ensure full satisfaction of each token-holder’s claim. CIMB and DBS will not be liable to compensate a token-holder where the funds in that trust account are insufficient to cover their claim.
Your right of redemptionin the event of insolvency
3.4. In the event of insolvency of STX XSGD and/or STX XUSD, general insolvency procedures under the law will follow. As the Reserve Assets are held on trust for the XSGD and XUSD-token holders, they will not be distributed toother unsecured creditors of STX XSGD and/or STX XUSD. Law and practice suggests that the token-holders will be required to file for a proof of debt with the liquidator. Distribution of Reserve Assets to the XSGD and XUSD-token holders will begin once the liquidator obtains concurrence from the court or committee of inspection (whichever is applicable).
StraitsX will hold yourfunds, StraitsX Tokens and Non-StraitsX Tokens on behalf of you in a trust account maintained by SPSPL and an external custodian
4.1. As a holder of a Major Payment Institution Licence under the Payment Services Act 2019, SPSPL is required to safeguard any relevant money received from you, or any StraitsX Tokens and Non-StraitsX Tokens received from you by depositing them into a trust account maintained either by SPSPL or an external custodian (known as the “Custodial Safeguarding Person”). For the avoidance of doubt, our obligation to safeguard your StraitsX Tokens and Non-StraitsX Tokens only relates to the amount of digital assets that have been minted and received from you.
Safeguarding your funds onbehalf of you in a trust account maintained by SPSPL
4.2. Any cash received from you but not used to mint StraitsX Tokenswill be safeguarded as Relevant Money by depositing them into segregated trustaccounts maintained with CIMB and/or DBS. The disclosures in clauses 5.3 to 5.6will similarly apply to the safeguarding of such cash received from you.
Safeguarding StraitsXTokens and Non-StraitsX Tokens on behalf of you in a trust account maintainedby SPSPL and an external custodian
4.3. In this regard, we will be holding your StraitsX Tokens andNon-StraitsX Tokens on your behalf in trust accounts that are maintained bySPSPL and with a Custodial Safeguarding Person. These trust accounts are distinguishable and maintainedseparately from any other account in which we may deposit our own assets.
4.4. Our current Custodial Safeguarding Person is BitGo, Inc. Please note that this may be subject to change, as we may appoint other Custodial Safeguarding Persons in the future. Where a Custodial Safeguarding Person is based outside of Singapore, the laws and practices governing trust accounts in the jurisdiction where the Custodial Safeguarding Person is licensed, registered, or authorized may differ from those in Singapore. These differences in legal frameworks and practices could potentially affect your ability to recover any assets deposited in the trust account in the event of insolvency or other adverse circumstances (such as a prolonged delay in the recovery process).
Your StraitsX Tokens and Non-StraitsX Tokens will be deposited and commingled with similar token belonging to other StraitsX users and risks of commingling
4.5. The StraitsX Tokens and Non-StraitsX Tokens, that are deposited in the above-mentioned trust accounts, may be deposited or commingled with StraitsX Tokens and Non-StraitsX Tokens belonging to other StraitsX users and may not be identifiable. The fact that your funds may be held in the same trust accounts as those of other StraitsX users does not impact your ownership or control over your tokens. We will also maintain, in our independent records, your identity and share of the StraitsX Tokens and Non-StraitsX Tokens that have been deposited in the trust accounts.
StraitsX will treat your StraitsX Tokens and Non-StraitsX Tokens deposited in the trust accounts as belonging to you subject to the terms and conditions in the StraitsX T&Cs
4.6. StraitsX will treat and deal with your StraitsX Tokens and Non-StraitsX Tokens deposited in the trust accounts as belonging to you and apply them in accordance to the terms and conditions of the StraitsX T&Cs, including the following terms and conditions:
4.6.1. You agree that where you have instructed us, agreed verbally or inwriting, including your agreement to the terms of this StraitsX T&Cs, or where the circumstances are clear such that you are deemed to have given consent to us, or where we are required by any Applicable Law, we are authorized to sell, redeem, transfer, set-off, burn, loan or otherwise alienate your StraitsX Tokens and Non-StraitsX Tokens in your StraitsX Digital Assets Account.
4.6.2. Where there is any change in our self-maintained trust accounts orthose maintained with the Custodial Safeguarding Person, you also agree and authorise us and/or the previous Custodial Safeguarding Person to transfer your StraitsX Tokens and Non-StraitsX Tokens to the new trust accounts.
4.6.3. Your StraitsX Tokens and Non-StraitsX Tokens held in the trust accounts are generally not considered a form of collateral. However, by agreeing to the StraitsX T&Cs, you agree that StraitsX has the right of lien, right of retention, and/or sale over the StraitsX Tokens and Non-StraitsX Tokens held by us on your behalf in the trust accounts to meet any liabilities, debts, or obligations you owe to StraitsX or any member of our corporate group pursuant to the terms and conditions of the StraitsX T&Cs.
Additional terms and conditions that would apply to the safeguarding of your StraitsX Tokens and Non-StraitsX Tokens by SPSPL and by Custodial Safeguarding Person:
4.7. The terms and conditions that apply to the safeguarding of the StraitsX Tokens and Non-StraitsX Tokens either by SPSPL or by a Custodial Safeguarding Person are as follows:
4.7.1. Whenever you confirm a transaction involving your StraitsX Tokens and Non-StraitsX Tokens held in the trust account, you hereby represent and warrant that you are making such a transaction on your own behalf. If another person is making that transaction on your behalf, you represent and warrant that that the other person has been granted the authority to do so by you, and that in all cases we are entitled to treat the transaction as being made by you.
4.7.2. In the event of default by SPSPL and/or the Custodial Safeguarding Person, your StraitsX Tokens and Non-StraitsX Tokens cannot be used for the payment of SPSPL and/or the Custodial Safeguarding Person’s debts, and your right and ability to redeem your StraitsX Tokens and Non-StraitsX Tokens from us, or directly from the Custodial Safeguarding Person, will not be affected. In the event of any loss of your StraitsX Tokens and Non-StraitsX Tokens maintained in the trust account with SPSPL or the Custodial Safeguarding Person, our liability to you shall strictly be limited to the balance held in your StraitsX Digital Assets Account.
4.7.3. Your StraitsX Tokens and Non-StraitsX Tokens may be deposited or commingled with StraitsX Tokens and Non-StraitsX Tokens belonging to other users and may not be identifiable by separate certificates, or other physical documents or equivalent electronic records. However, your identity and your share of the StraitsX Tokens and Non-StraitsX Tokens in the trust account with SPSPL and the Custodial Safeguarding Person shall be maintained in our independent records at all times.
4.7.4. The StraitsX Tokens and Non-StraitsX Tokens held with SPSPL and the Custodial Safeguarding Person shall be registered in the name of SPSPL, who is entitled to claim and receive any entitlements accruing to you in relation to the StraitsX Tokens and Non-StraitsX Tokens held on your behalf. SPSPL is also empowered to exercise any rights and powers arising from the ownership of these assets strictly in accordance with the instructions received from you.
4.7.5. You may request for information relating to the safeguarding of your StraitsX Tokens and Non-StraitsX Tokens, which we may furnish at our discretion.
Consequences for you in the event of insolvency
4.8. Notwithstanding the foregoing, in the event of insolvency affecting SPSPL and the Custodial Safeguarding Person, your StraitsX Tokens and Non-StraitsX Tokens cannot be used for the payment of our, or the Custodial Safeguarding Person’s, debts, and your right and ability to redeem your StraitsX Tokens and Non-StraitsX Tokens from us, or directly from the Custodial Safeguarding Person, will not be affected.
StraitsX will safeguard all Relevant Money it receives from you at all times by depositing them into a trust account maintained with a Safeguarding Institution
5.1. As a holder of a Major Payment Institution Licence under the Payment Services Act 2019, XPL is required to safeguard Relevant Money that it receives from you, or on your account, with a Safeguarding Institution.
5.2. In this regard, we have chosen to safeguard the aggregate Relevant Money by depositing it into trust accounts maintained with CIMB and DBS.
Commingling of Relevant Moneys and risks of commingling
5.3. Any Relevant Moneys received by XPL from you, or on your account, and deposited in these trust accounts will be commingled with Relevant Money received on account of other users. Consequently, it will not be possible to identify any portion of the Relevant Money in the trust account(s) as specifically belonging to you, and money in the trust accounts could be withdrawn to meet the obligations of other users.
Treatment of your Relevant Money in the event of insolvency
5.4. The purpose for safeguarding the Relevant Money received from you, or on your account, in a trust account ensures that in the event of XPL’s insolvency, or if a financial claim is made against XPL, no creditor or claimant should be able to claim the funds held in these trust accounts. No other person or institution may have any rights or interest over the funds held in these trust accounts.
5.5. You acknowledge that maintaining the Relevant Money in a trust account on behalf of you does not guarantee that StraitsX will be able to satisfy any and all claims by you in relation to the Relevant Money, and that CIMB and DBS will not be liable to compensate you where the funds in the trust accounts are insufficient to satisfy your claim against us.
5.6. You acknowledge and agree that Relevant Money will not include any moneys paid to us that will be used to defray any fees or charges imposed by us in connection with this StraitsX T&Cs, or any money used to reduce the amount owed by you to us.
6.1. You must consider carefully when choosing whether to use the StraitsX Earn service. Specifically, the StraitsX Earn service is not a risk-free product. Before using it, in addition to the Additional T&Cs pertaining to Risk Warnings, Notices & Disclosures, you should also pay be aware of the risk disclosures below:
6.1.1. Xfers Investment Pte Ltd (i.e. XIPL) is not licensed by the Monetary Authority of Singapore to provide any investment services or payment services.You may not be able to recover any loans or StraitsX Tokens or Non-StraitsX Tokens if our business fails.
6.1.2. You should not transact in any StraitsX Tokens or Non-StraitsX Tokens if you are not familiar with them. Transacting in StraitsX Tokens or Non-StraitsX Tokens may not be suitable for you if you are not familiar with the technology that stablecoin services are provided through.
6.1.3. You should be aware that the value of StraitsX Tokens or Non-StraitsX Tokens may fluctuate (albeit to a lesser extent compared to cryptocurrencies). You should only buy and hold StraitsX Tokens or Non-StraitsX Tokens if you are prepared to accept the risk of losing all of the money you put into such tokens.
Reversal of payments/transfers
7.1. Payments/Transfers received in your StraitsX Accounts may be reversed at a later time, for example, if a payment/transfer is subject to a Chargeback, Reversal, Claim or is otherwise invalidated. This means that a payment/transfer may be reversed from your StraitsX Accounts after you have provided the sender the products/goods/assets/property or services that were purchased.
Unauthorised transactions
7.2. You should be aware of the possibility of unauthorised transactions from your StraitsX Accounts or receiving payments from unauthorised transactions from a third party’s account. You must be familiar, and adhere, with the user obligations (as reflected in in the Additional T&Cs pertaining to StraitsX Accounts) that can help protect you from the risks of unauthorised transactions by safeguarding your StraitsX Accounts’ IDs, passwords, API secret keys, and any other codes you use to access and use our StraitsX Services or to send any instruction to us.
Closure, suspension or limiting access to StraitsX Accounts or Services
7.3. We may close, suspend, or limit your access to your StraitsX Accounts or the StraitsX Services, and/or limit access to your funds if you violate this StraitsX T&Cs, or any other agreement you enter into with StraitsX.
Technical risk
7.4. The StraitsX Services, StraitsX Dashboard or any StraitsX platform may experience unforeseen outages or technical errors beyond StraitsX’s reasonable control. Should such unforeseen outages or technical errors occur, StraitsX will take reasonable steps to restore functionality as promptly as possible.
Smart contract risk and/or protocol risk
7.5. There is always a risk of hacks, cyber-attacks, distributed denials of service or errors, failures, vulnerabilities, flaws in the programming or source code or defects into the StraitsX Accounts and Services, StraitsX Dashboard, any StraitsX platform or any third-party platform that StraitsX relies on in powering its Services. While StraitsX implements an internal monitoring mechanism, the occurrence of such adverse events may affect the ability of StraitsX to repay or fulfil any withdrawal requests from StraitsX users.
Regulatory risk
7.6. You are solely responsible for understanding and complying with any and all laws, rules and regulations of your specific jurisdiction that may be applicable to you in connection with your use of our StraitsX Services and your StraitsX Accounts. There is also a real risk that regulatory bodies may implement changes to Applicable Laws and regulations affecting StraitsX Tokens and Non-StraitsX Tokens and any of the StraitsX Services. While StraitsX has taken every reasonable effort to ensure that our StraitsX Services are compliant with Applicable Laws, any changes in Applicable Laws or other regulatory actions could negatively impact StraitsX, including but not limited to the availability of any of our StraitsX Services to users in certain jurisdictions.
Not an offer or solicitation
7.7. The content of the StraitsX Website and the StraitsX Earn services do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell investments, securities, partnership interests, commodities or any other financial instruments. The content of the StraitsX Website and the StraitsX Earn services also do not constitute, and may not be used for or in connection with, an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorised or permitted, or to any person to whom it is unlawful to make such offer or solicitation.
Taxes
7.8. StraitsX does not provide any legal, tax or financial advice, normake any offers, recommendations or invitations to deal in digital assets. Itis your responsibility to determine what, if any, taxes apply to your intendeduse of the StraitsX services, and it is your responsibility to collect, reportand remit the correct tax to the appropriate tax authority. StraitsX is notresponsible for determining whether taxes apply to your intended use of the StraitsX Services.
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