Legal
StraitsX Tokens
Important – the Additional T&Cs stated in this section governs your use of the StraitsX Tokens (as defined below).
User advisory - The StraitsX Tokens are single-currency stablecoins issued by the following StraitsX entities: StraitsX Payment Services Pte Ltd (i.e. SPSPL), StraitsX SGD Issuance Pte Ltd (i.e. STX XSGD) and StraitsX USD Issuance Pte Ltd (i.e. STX XUSD). StraitsX Tokens are not money, legal tender or monetary instruments and we make no representation that StraitsX Tokens can be used as such. The StraitsX Tokens are all currently characterised as digital payment tokens. The XSGD and XUSD have specifically been acknowledged by the Monetary Authority of Singapore to be compliant with the upcoming stablecoin regulatory framework (as published by the Monetary Authority of Singapore in the ‘Response to Public Consultation on Proposed Regulatory Approach for Stablecoin-related activities’ paper dated 15 August 2023).
1. SERVICE DESCRIPTION
- You can transfer, trade, keep, or use the StraitsX Tokens to pay persons that will accept them, or redeem them for the pegged currency on a 1:1 basis, subject to the StraitsX T&Cs.
2. ABOUT STRAITSX TOKENS
- StraitsX Tokens consists of the following single-currency pegged stablecoins:
- XSGD - issued by STX XSGD and pegged to the Singapore dollar on a 1:1 basis respectively – in other words, each XSGD is pegged by one (1) Singapore dollar.
- XUSD - issued by STX XUSD and pegged to the US dollar on a 1:1 basis respectively – in other words, each XUSD is pegged by one (1) US dollar.
Purchase of StraitsX Tokens
- SPSPL is one of the appointed distributors of StraitsX Tokens and is responsible for facilitating the purchase, redemption, custody and use of StraitsX Tokens as well as other StraitsX Tokens-related services. As such, you may purchase StraitsX Tokens directly from us via the StraitsX Dashboard or from third parties in the secondary marketplace. Please see the Additional T&Cs governing the purchase and redemption of StraitsX Tokens.
Legal status of StraitsX Tokens
- StraitsX Tokens are not money, legal tender or monetary instruments and we make no representation that StraitsX Tokens can be used as such. StraitsX Tokens are currently considered digital payment tokens under the Payment Services Act 2019 (and the regulations made thereunder) and are regulated accordingly.
Upcoming stablecoin regulatory framework
- The Monetary Authority of Singapore has conceptualised a regulatory framework which seeks to regulate single-currency stablecoins pegged to the Singapore-dollars or G10 currencies that are issued in Singapore. XSGD and XUSD have been acknowledged by the Monetary Authority of Singapore to be compliant with the upcoming stablecoin regulatory framework (as published by them in the ‘Response to Public Consultation on Proposed Regulatory Approach for Stablecoin-related activities’ paper dated 15 August 2023).
Blockchain compatibility
- StraitsX Tokens are cryptographically secure and represented on the Ethereum, Hedera, Polygon and Ziliqa blockchain networks and such other blockchain networks (“Compatible Networks”) as we may announce on the StraitsX Website from time to time. As StraitsX Tokens are represented on the blockchain, you will require a compatible Wallet (such as your StraitsX Digital Assets Wallet) to purchase, store, use and redeem StraitsX Tokens.
Right of redemption for StraitsX Tokens
- Subject to the terms and conditions of these StraitsX T&Cs, every holder of a StraitsX Token will have the right to redeem the value of their StraitsX Token for the equivalent fiat currency (e.g. for SGD if XSGD is being redeemed; for USD if XUSD is being redeemed) on a 1:1 basis at anytime either with SPSPL or directly with STX XSGD or STX XUSD. This is regardless of whether the StraitsX Tokens were purchased directly from SPSPL, STX XSGD, STX XUSD or any of our appointed distributors. However, this redemption right is conditional upon the said holder of a StraitsX Token meeting StraitsX’s onboarding requirements and is subject to any applicable regulatory constraints, law enforcement actions, or court judgments.
StraitsX Token Contract
- You are responsible for ensuring that any StraitsX Tokens that you receive and/or hold originate from the smart contract that has been developed and deployed by us in respect of the StraitsX Tokens on the relevant blockchain system (i.e. StraitsX Token Contract). You may access the list of StraitsX Token Contracts on the StraitsX Website.
- It is possible that a party unaffiliated with StraitsX may create an alternative or derivative version of StraitsX Tokens, including but not limited to, wrapping or otherwise altering the original StraitsX Tokens, or by developing and deploying a smart contract on a blockchain system, and passing off such tokens as a genuine “StraitsX Token”. For the avoidance of doubt, such unsupported are not StraitsX Tokens and such, they would constitute Unsupported Digital Assets. Please refer to clauses 9.7 and 9.9 of the General T&Cs in relation to such tokens.
Security incidents pertaining to StraitsX Token Contract
- In the event of a hack, security incident, or any issue affecting the StraitsX Token Contract that we have deployed, StraitsX reserves the right to immediately suspend all services involving StraitsX Tokens, including but not limited to issuance, transfer, redemption, and any other related services. This action may be necessary to address the security concern and to prevent further potential losses or disruptions.
Records of StraitsX Tokens
- All balances and transactions in respect of all StraitsX Tokens held in a Non-StraitsX Account will be determined by us based on the records stored on the relevant blockchain system, and all such determination shall, save for any fraud or manifest error in such records, be conclusive and binding on you for all purposes. In the event that we determine there is any fraud or manifest error in such records, we shall have the sole and absolute discretion to determine what shall be the correct balances and transactions in respect of all StraitsX Tokens (including, without limitation, all StraitsX Tokens that we hold and control on behalf of users), and all such determinations shall be conclusive and binding on you for all purposes.
Frozen and/or blacklisted StraitsX Tokens
- Notwithstanding the generality of the StraitsX T&Cs, we reserve the right to blacklist any Non-StraitsX Account and/or freeze any StraitsX Tokens held in any Non-StraitsX Account where we, in our sole and absolute discretion, believe that such StraitsX Tokens have been used for the purposes of and/or in connection with any Restricted Activity. The holder(s) of such StraitsX Tokens which have been frozen or which are held in blacklisted in any Non-StraitsX Account shall not be entitled to redeem or exchange such StraitsX Tokens for fiat money, withdrawn, or transmitted until further notice by us.
Repossessed StraitsX Tokens
- We may also, in our sole and absolute discretion, including but not limited to when when a notice, order or directive (or anything of a similar nature) is issued by a regulatory body or a law enforcement agency, initiate the repossession of the StraitsX Tokens (“Repossessed StraitsX Tokens”) that have been frozen or which are held in any blacklisted Non-StraitsX Account, and issue new StraitsX Tokens (“New StraitsX Tokens”) in replacement for such StraitsX Tokens. Once replaced, the holders of the Repossessed StraitsX Tokens will no longer be recognised as holders of the New StraitsX Tokens, and will not be able to assert any rights in relation to the Replaced or New StraitsX Tokens. For the avoidance of doubt, the Repossessed StraitsX Tokens will no longer be recognized as StraitsX Tokens.
Security Incidents pertaining to blockchains
- StraitsX is neither able nor obliged to prevent or mitigate attacks or resolve issues that might arise with blockchain technologies. In the event of such security incidents, we reserve the right to suspend or restrict any or all of our Services involving StraitsX Tokens and/or Non-StraitsX Tokens. Any such attacks or delays on the blockchains may materially delay or prevent you from sending or receiving such tokens, and StraitsX shall not be liable for any losses that result from these issues. These actions may be taken to protect the integrity of transactions and the security of users’ assets, and you acknowledge that they are necessary responses to protect against potential losses or damages.
Forks
- As a result of the decentralised and open source nature of the StraitsX Tokens, anybody may develop a patch or upgrade of the source code of the blockchain system on which records of the StraitsX Tokens are stored without prior authorisation from anyone else. Accordingly, these blockchain systems can experience sudden changes in operating rules that are outside our control when a significant, but not overwhelming, percentage of the users accepts such patches or upgrades, called a “Fork”. Consequently, this could result in the operation of two separate networks on which records of the StraitsX Tokens are stored (i.e. multiple versions of the StraitsX Tokens), and will remain separate until the blockchain systems are merged.
- In the event of any such Fork of a StraitsX Token, we may, in our sole and absolute discretion, determine which Fork of the StraitsX Token it will support, if any. We are under no obligation to support any Fork of a StraitsX Token. Further, we are entitled to in our sole and absolute discretion (but not obligated to) adjust your StraitsX Token balance held in your StraitsX Digital Assets Account and/or adjust the records of the StraitsX Tokens (by issuing and/or freezing StraitsX Tokens) held by Non-StraitsX Account Token Holder. Any such adjustments shall be determined by us in our sole and absolute discretion, depending on the circumstances. In doing so we will use reasonable endeavours to effect such adjustment on the basis of good faith and fairness, and where appropriate, by taking into account the records of StraitsX Tokens stored (a) on the various blockchain systems, and (b) by us in our own ledger, if any.
- Where we do not support any Fork of a StraitsX Token, StraitsX Tokens which are recorded on the forked network would not be considered as StraitsX Tokens, and therefore the holder(s) of such StraitsX Tokens shall not be entitled to redeem or exchange such StraitsX Tokens for fiat money with StraitsX. This also means that we assume no responsibility for any value that might be lost as a result of any unsupported Fork of any StraitsX Token.
- In the event of a Fork of a StraitsX Token, we may suspend some or all activities relating to the StraitsX Token (including, without limitation, issuance, redemption, purchase, sending and/or receiving of StraitsX Tokens) for an extended period of time (i.e. Downtime) During this period of Downtime, you will not be able to Instruct us to issue StraitsX Tokens, nor redeem, purchase, withdraw, send or receive StraitsX Tokens.
- You agree that we are not responsible or liable to you for any losses or damages, including lost profits, which may occur as a result of a Fork, Downtime, or our determination to support or to not support any particular Fork.
Updates, upgrades and migration of StraitsX Tokens
- We reserve the right to undertake an update or upgrade to the StraitsX Tokens, or migrate the StraitsX Tokens to a new blockchain system or address. It is your obligation to ensure that you participate in such updates, upgrades, or migrations as necessary. Failure to do so may result in your StraitsX Tokens becoming unusable, although you may still redeem and withdraw the non-updated/upgraded/migrated StraitsX Tokens with StraitsX in accordance with these StraitsX T&Cs, subject to any additional terms that we may impose on such redemption and/or withdrawal of non-updated/upgraded/migrated StraitsX Tokens in our sole and absolute discretion. StraitsX is under no obligation to assist in recovering any StraitsX Tokens lost due to your failure to participate such updates, upgrades, or migrations, including but not limited to sending your StraitsX Tokens to (i) a Non-StraitsX Account that is incompatible with the updated blockchain, or to (ii) an outdated wallet address or a blockchain system no longer supported by StraitsX.
3. RESERVE BACKING OF XSGD & XUSD
- In accordance with the upcoming stablecoin regime designed by the Monetary Authority of Singapore and/or regulatory requirements imposed by them, 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 (i.e. StraitsX SGD Issuance Pte Ltd) (for XSGD) and STX XUSD (i.e. StraitsX USD Issuance Pte Ltd)(for XUSD) in segregated accounts on trust for the XSGD and XUSD token-holders, separate from the assets of STX XSGD and STX XUSD.
- Please see the Additional T&Cs pertaining to Risk Warnings, Notices & Disclosures for the terms and conditions in relation to the safeguarding of the Reserve Assets backing the XSGD and XUSD.
4. SAFEGUARDING YOUR STRAITSX TOKENS
Please see the Additional T&Cs pertaining to Risk Warnings, Notices & Disclosures for the terms and conditions in relation to the safeguarding of the StraitsX Tokens and Non-StraitsX Tokens.
