Singapore Central Bank: Token Sales May Be Subject to...
Array

Singapore Central Bank: Token Sales May Be Subject to Securities Laws

-

- Advertisment -

Singapore’s central bank has issued new statements on the offering of digital tokens, stating that some issuances may fall under its definition of a security.

The Monetary Authority of Singapore (MAS) outlined its position on token sales – known more commonly as initial coin offerings, or ICOs – in a new statement published this morning. The regulator indicated that it considers some tokens as securities, depending on their underlying basis and the context of their issuance – a stance similar to the one expressed last week by the U.S. Securities and Exchange Commission.

The MAS explained in its release:

“MAS has observed that the function of digital tokens has evolved beyond just being a virtual currency. For example, digital tokens may represent ownership or a security interest over an issuer’s assets or property. Such tokens may therefore be considered an offer of shares or units in a collective investment scheme under the [Securities and Futures Act]. Digital tokens may also represent a debt owed by an issuer and be considered a debenture under the SFA.”

Token sales that fall under the MAS definition of a security would trigger relevant requirements, including the need to submit a prospectus with the central bank before the sale takes place. “Issuers and intermediaries” of such tokens, the MAS went on to explain, would also be subject to licensing requirements.

Like the SEC, the MAS indicated that companies that allow for the exchange of ICO-derived tokens would need to be sanctioned as well.

“In addition, platforms facilitating secondary trading of such tokens would also have to be approved or recognised by MAS as an approved exchange or recognised market operator respectively under the SFA,” the central bank said.

Ultimately, the MAS recommended that prospective token issuers seek out legal advice, as well as consult with the institution itself.

“All issuers of digital tokens, intermediaries facilitating or advising on an offer of digital tokens, and platforms facilitating trading in digital tokens should therefore seek independent legal advice to ensure they comply with all applicable laws, and consult MAS where appropriate,” the MAS said.

Singapore image via Shutterstock


The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Source link

Singapore Central Bank: Token Sales May Be Subject to Securities Laws
Bitnewsbot.comhttps://bitnewsbot.com
BitNewsBot.com aggregates the latest news around bitcoin, blockchain, cryptocoin, ICO's and FinTech, from all around the internet and publishes them in a single place.

Latest news

Top 7 Porn Sites That Accept Bitcoin/Crypto

Bitcoin and other cryptocurrencies are not that exotic anymore. Ever since the big boom on the crypto...

“Chinachain” aims to connect hundreds of cities across China. Will it work?

If there’s ever a “Chinachain” for business, sanctified and supported by the state, the BSN ( Blockchain...

Top 10 BEST Crypto Trading Books for New Traders (2020)

We may receive a small revenue share if you purchase something from this guide - with...

Crypto Firm That Connects Exchanges and Banks Receives $5m Investment From Wells Fargo

Cryptocurrency startup Elliptic recently held a Series B funding round which was joined by a venture arm...
- Advertisement -

Will New Zealand’s crypto salary project work?

Now in 2020, Bitcoin, and in a broader sense cryptocurrencies in general, have gone through hundreds of...

Is Tron’s decentralized app market really a “Las Vegas on the blockchain?”

The original idea behind creating cryptocurrencies was to offer a much more decentralized and convenient payment platform...

Must read

Top 7 Porn Sites That Accept Bitcoin/Crypto

Bitcoin and other cryptocurrencies are not that...

“Chinachain” aims to connect hundreds of cities across China. Will it work?

If there’s ever a “Chinachain” for business,...
- Advertisement -Singapore Central Bank: Token Sales May Be Subject to Securities LawsSingapore Central Bank: Token Sales May Be Subject to Securities Laws

You might also likeRELATED
Recommended to you