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Digital Asset Purchase Agreement Template for Singapore

A Digital Asset Purchase Agreement under Singapore law is a legally binding document that facilitates the sale and purchase of digital assets, including cryptocurrencies, tokens, or NFTs. It incorporates specific provisions required by Singapore's Payment Services Act and relevant MAS guidelines, addressing key aspects such as asset transfer, custody arrangements, regulatory compliance, and risk allocation. The agreement ensures compliance with Singapore's robust digital asset regulations while protecting both parties' interests in the transaction.

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What is a Digital Asset Purchase Agreement?

The Digital Asset Purchase Agreement serves as a comprehensive framework for digital asset transactions in Singapore's evolving digital economy. It is specifically designed to comply with Singapore's regulatory requirements, including the Payment Services Act 2019 and MAS guidelines. This agreement is essential when conducting regulated digital asset transactions, providing clear terms for asset transfer, payment, custody, and risk allocation. It includes necessary provisions for regulatory compliance, KYC/AML requirements, and technical specifications for the digital assets being transferred.

What sections should be included in a Digital Asset Purchase Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including technical definitions of digital assets, blockchain, wallets, and other relevant terminology

4. Description of Digital Assets: Detailed specification of the digital assets being purchased, including quantity, characteristics, and unique identifiers

5. Purchase Price and Payment Terms: Price, payment method, timing of payments, and currency specifications

6. Transfer and Delivery: Process and timing for transferring the digital assets, including wallet specifications and verification procedures

7. Representations and Warranties: Legal assurances from both parties regarding ownership, authority, and compliance with applicable laws

8. Risk Allocation: Distribution of risks between parties, including technological, regulatory, and market risks

9. Governing Law and Jurisdiction: Specification of Singapore law as governing law and jurisdiction for dispute resolution

What sections are optional to include in a Digital Asset Purchase Agreement?

1. Escrow Arrangements: Terms for third-party escrow services if used for the transaction

2. KYC/AML Requirements: Compliance requirements for identity verification and anti-money laundering procedures

3. Tax Provisions: Specific tax treatment and obligations for digital asset transactions

4. Custody Arrangements: Terms for digital asset custody if custody services are part of the transaction

What schedules should be included in a Digital Asset Purchase Agreement?

1. Schedule 1 - Digital Asset Specifications: Technical details and characteristics of the digital assets being purchased

2. Schedule 2 - Transfer Protocol: Technical procedures for executing the transfer of digital assets

3. Schedule 3 - Compliance Requirements: Detailed regulatory compliance procedures and requirements

4. Schedule 4 - Fee Schedule: Breakdown of all applicable fees and charges related to the transaction

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Publisher

Genie AI

Sector

Crypto

Cost

Free to use

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