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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 redemption in 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 your assets 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 (to be singularly or collectively in any combination called “assets” depending on the context) received from you by depositing them into a trust account maintained either by SPSPL or an external third-party custodian (to be known as the “Custodial Safeguarding Person”). As such, you will continue to retain a beneficial ownership interest in the assets held with StraitsX or with 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 cash on behalf of you in a trust account maintained by SPSPL
4.2. Any cash received from you but not used to mint StraitsX Tokens will be safeguarded as Relevant Money by depositing them into segregated trust accounts maintained with CIMB and/or DBS. The disclosures in clauses 5.3 to 5.6 will similarly apply to the safeguarding of such cash received from you.
Safeguarding your assets on behalf of you in a trust account maintained by SPSPL and an external custodian
4.3. We will be holding your assets (i.e StraitsX Tokens and Non-StraitsX Tokens) on your behalf in trust accounts that are maintained by SPSPL and with a Custodial Safeguarding Person. These trust accounts are distinguishable and maintained separately from any other account in which we may deposit our own assets.
4.4. Our current Custodial Safeguarding Person is BitGo, Inc. This may be subject to change, as we may appoint other Custodial Safeguarding Persons in the future.
4.5. Where a Custodial Safeguarding Person is based outside of Singapore, this may mean that your assets may also be stored in devices located in that foreign jurisdiction. As such, you should take note that the laws and practices in these foreign jurisdictions may differ from those in Singapore. These differences in legal frameworks and practices could potentially affect your ability to recover your assets in the event of insolvency or other adverse circumstances. For example, there may be a substantial delay in the recovery process due to the need to obtain foreign regulatory approvals or there may be a need to partake in foreign court proceedings before your assets can be returned to you.
StraitsX will treat your assets 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 assets (i.e. the StraitsX Tokens and/or 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. Whenever you confirm a transaction involving your assets 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.
4.6.2. Your assets 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 your assets held by us on your behalf in the trust accounts to meet any liabilities, debts, or obligations (e.g. unpaid fees, invoices, damages or any financial obligation) you owe to StraitsX or any member of our corporate group pursuant to the terms and conditions of the StraitsX T&Cs.
4.6.3. Your assets (i.e. the StraitsX Tokens and/or Non-StraitsX Tokens), that are deposited in the above-mentioned trust accounts, may be deposited or commingled with assets belonging to other StraitsX users and may not be identifiable by separate certificates, or other physical documents or equivalent electronic records. The fact that your assets may be held in the same trust accounts as those of other StraitsX users does not impact your ownership or control over your assets. We will also maintain, in our independent records, your identity and share of the assets that have been deposited in the trust accounts.
4.6.4. You agree that where you have instructed us, agreed verbally or in writing, 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 assets in your StraitsX Digital Assets Account.
4.6.5. Where there is any change in our self-maintained trust accounts or those maintained with the Custodial Safeguarding Person, you also agree and authorise StraitsX and/or the previous Custodial Safeguarding Person to transfer your assets to the new trust accounts.
4.6.6. The assets 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.
4.6.7. You may request for information relating to the safeguarding of your assets, which we may furnish at our discretion.
4.6.8. While there may be fees applicable for the use of our StraitsX Services, there are no standalone fees to be incurred by you in relation to the safeguarding of your assets with StraitsX and/or the Custodial Safeguarding Person.
Loss of assets
4.7. In the event that any of our appointed Custodial Safeguarding Person default in the safeguarding arrangements, StraitsX commits to making every effort to recover and protect your assets. However, StraitsX will not be able to guarantee the full recovery of all of your assets in the event of a custodian default. As stated in the StraitsX T&Cs, and except as may be required by Applicable Laws, StraitsX will also not be liable for any loss you may suffer as a result of any act or omission of that Custodial Safeguarding Person. You acknowledge and accept the inherent risks associated with holding assets with an external third-party custodian.
4.8. In all other situations, StraitsX’s liability to compensate users for loss of assets held with StraitsX or its Custodial Safeguarding Person will be determined in accordance with Applicable Laws (including MAS regulatory requirements) and/or the StraitsX T&Cs. Please visit the StraitsX Compensation Policy for more details pertaining to the scope of coverage and the claims process. Do take note that, unless required by Applicable Laws, StraitsX will generally not be liable for any loss caused by your action (fraudulent or otherwise), contributory negligence or omission, including but not limited to: (i) transactions carried out on the instructions of a third party or allowing a third party remote access to your device while logged in to your StraitsX Accounts; or (ii) compromised login credentials or API keys.
4.9. To lodge a claim for a compensation payment, please lodge a support ticket with StraitsX and provide all requested information with sufficient details and clarity. Once the support ticket is lodged, StraitsX will aim to provide an initial response within 5 business days.
4.10. Do take note that StraitsX’s liability is capped at the amount or value of lost assets at the time of the incident. Please visit the StraitsX Compensation Policy for more details pertaining to the the scope of coverage and the claims process.
Consequences for you in the event of StraitsX's insolvency
4.11. In the event of SPSPL’s insolvency, general insolvency procedures under the law will follow. As you are the beneficial owner of your assets, you will be able to claim ownership of your assets (e.g. StraitsX Tokens) held with StraitsX and/or the Custodial Safeguarding Person. Law and practice suggests that you will be required to file for a proof of debt with the liquidator. Distribution of assets will begin once the liquidator obtains concurrence from the court or committee of inspection (whichever is applicable).
The following disclosures pertaining to StraitsX E-money will take effect on 1 November 2024. Until then, the existing disclosures outlined in the current version of the StraitsX T&Cs will remain valid and in force.
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.
StraitsX's storage arrangements
7.1. StraitsX maintains a policy on digital asset storage arrangements that balances security with operational efficiency. Our approach involves using three distinct types of storage:
7.1.1. “Users assigned deposit wallets” - where user’s deposited StraitsX Tokens or Non-StraitsX Tokens will be received.
7.1.2. “Hot wallets” - where a small portion of digital assets remains online to provide the liquidity needed for daily trading, withdrawal, and other transactions.
7.1.3. “Cold Storage” - where the majority of digital assets are stored offline for enhanced security. These assets are held in environments not connected to the internet, reducing exposure to cyber risks..
7.2. StraitsX’s target allocation of assets in both users’ assigned deposit wallets and hot wallets (“ Settlement Wallets”) is rebalanced periodically to ensure compliance with applicable regulatory thresholds and operational needs. The assets allocated to the settlement wallet are carefully managed according to pre-set maximum and minimum balance thresholds.
7.3. When net asset inflows cause the Settlement Wallets to exceed a specified maximum balance, the excess funds are automatically moved to Cold Storage to reduce the balances in the Settlement Wallets to a designated threshold.
7.4. Conversely, if net asset outflows reduce the Settlement Wallet balance below a designated threshold, StraitsX will review transaction patterns and, where necessary, transfer additional assets from cold storage to meet liquidity requirements.
StraitsX's storage controls
7.5. StraitsX maintains a policy to restrict any StraitsX employee from solely authorising and effecting the movement, transfer or withdrawal of StraitsX user’s assets via access controls instituted on the wallets. Access controls are further complemented with hard-coded rules that restrict transfers of digital assets in Settlement Wallets and Cold Storage.
Cybersecurity and risk mitigation measures
7.6. StraitsX implements comprehensive measures to mitigate the risk of loss due to cyber threats. Measures taken comply with applicable regulations which cover practices that govern security over administrative accounts, application of security patches to address vulnerabilities, network perimeter defence, malware protection, and multi-factor authentication.
7.7. Additionally, the vast majority of customer assets are held in vault storage facilities that are offline, encrypted, and subject to stringent physical and digital security protocols. Private keys associated with settlement wallets are also secured in an isolated, encrypted system. These precautions aim to protect customer assets against potential cyber attacks.
7.8. Vulnerability assessment to identify security vulnerabilities together with regular penetration testing is carried out to ensure any vulnerabilities or gaps are surfaced on a timely basis, and rectified promptly. Additionally, some of our StraitsX entities are also ISO 27001 certified, which means that they undergo an annual evaluation of our security posture by the independent assessor to ensure that they continuously fulfill the requirement of the certification.
Reversal of payments/transfers
8.1. 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
8.2. 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
8.3. 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
8.4. 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
8.5. 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 fulfill any withdrawal requests from StraitsX users.
Regulatory risk
8.6. 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
8.7. 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
8.8. 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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