Why custody is the central question

Read the PDF edition (1 page)

Most of the legal risk in digital assets concentrates at one point: who holds the private key, and on what terms. Regulation in both hubs is organised around that point. Switzerland's banking law asks whether a custodian accepts deposits or merely safekeeps.¹ Singapore's Payment Services Act 2019 makes "providing custodian services for digital payment tokens" a licensable service in its own right since the 2021 amendments took effect in April 2024.² Insolvency law in both places decides whether the customer of a failed custodian takes her tokens out or shares pro rata with the trade creditors. Tax law in both places asks who has control at the moment a reward is paid. The custody model chosen determines the answer to each question.

This chapter describes the models as they exist in practice and names the legal consequence of each. The detailed Swiss and Singapore rules are in Part D, Chapter IV, Part E, Chapter VIII, Part J, Chapter II and Part K, Chapter II.

Notes

Banking Act, SR 952.0, Art. 1b (fintech licence) and Art. 16 no. 1bis (crypto-based assets held for clients treated as custody assets in a bank's insolvency), both inserted by the DLT Act of 25 September 2020, AS 2021 33. ↩
Payment Services Act 2019 (Singapore), First Schedule, Part 3, para. (f) (digital payment token service) as amended by the Payment Services (Amendment) Act 2021, commenced 4 April 2024, extending the definition to custody, transfer and brokering. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.

English

Contact

Dr Alexander Ressos, TEP

Of Counsel, KGP Legal LLC

I am Of Counsel with KGP Legal LLC in Singapore, where I work with a global client base of successful entrepreneurs and their families, independent asset managers, commodity trading houses and other commercial clients. I am a German and Swiss attorney-at-law, also admitted as a solicitor in England & Wales and in Hong Kong. I divide my time between Zug in Switzerland, Singapore and Hong Kong. Since 2017 I have advised international clients on more than 700 crypto and digital asset projects. I also have extensive experience in cross-border litigation and arbitration in Singapore, Hong Kong and other markets in South-East Asia and Greater China.

I operate across the key financial centres in South-East Asia, the Middle East and Switzerland, with a particular focus on asset protection, international tax and estate planning, as well as trusts, company administration and other fiduciary services. My philosophy is to serve as a trusted advisor working closely with my clients and to help them achieve their commercial objectives.

All Singapore law advice is provided through KGP Legal LLC, an established and duly licensed firm of Singapore advocates and solicitors.

KGP Legal LLC is a medium-sized law firm in Singapore that is capable of providing the full range of legal services and corporate administration work. Please contact me if you need any further information.

Get in touch →

Articles and Insights

Setting up or expanding in Singapore?

SingaporeIQ is edited by Dr Alexander Ressos, an international business lawyer with more than 15 years of local experience in Singapore as a permanent resident, a Singapore registered foreign lawyer and managing partner of a Singapore foreign law practice. In addition to significant experience in cross-border investments and transactions, UHNWI private client work and sanctions/export controls, Dr Ressos has extensive experience in cross-border business and in crypto and digital-asset projects in Singapore, drawn from more than 700 projects since 2017.

If you are planning a company incorporation, an investment, a holding structure or a market entry through Singapore, you can reach Dr Ressos directly at [email protected]. Singapore law advice is provided by KGP Legal LLC, a licensed firm of Singapore advocates and solicitors. Dr Ressos and his team facilitate the full range of Singapore legal, compliance and company administration services, including company incorporation, corporate transactions, commercial contracts, crypto and digital assets, financial regulatory work and dispute resolution, including litigation in the Singapore courts. For Hong Kong, our parallel site HongkongIQ.com offers the same practical guidance. For crypto and digital assets, dltreg.com covers legal, tax and fiduciary services. For legal, tax and fiduciary services in Switzerland, see helveticaregister.com.