MAS (The Monetary Authority of Singapore) published a “guide to digital token offerings”. The guide’s aim is to determine how ICOs (initial coin offerings) will be considered to securities laws of Singapore.
The document explains the regulatory implications of the Financial Advisers Act (FAA) and the Securities and Futures Act (SFA) for ICOs.
The MAS clarifies: “a person may only make an offer of digital tokens which constitute units or securities in an ‘Offer’ (CIS) if the Offer meets the requirements under Part 13 of the SFA. This also includes the requirements that a prospectus which is registered in MAS and prepared according to SFA.”
Digital currencies that aren’t within the MAS’ regulatory Jurisdiction may be considered subject to anti-terrorism and anti-money laundering financing Laws.
The paper claims the following. “A person who operates or establishes a trading platform in Singapore related to digital currencies, which constitute securities or futures contract, must be recognized by MAS “as a recognized market operator under the SFA”. Additionally, those who provide financial advice related to digital tokens must be owners of a financial adviser’s license”
Furthermore, the regulator makes clear its intention to establish a new framework of payments services. This will include regulations to specify terrorism and money laundering financing risks, which is related to the exchange of virtual currencies.
At singapore Fintech Festival, the managing director of MAS, talked about the regulations
The same day the guide was published, Mr. Ravi Menon (the managing director of the MAS) revealed his plans at the second Singapore Fintech Festival. During his speech, the managing director clarified Singapore’s regulatory position in relation to cryptocurrencies. He stated: “MAS does not regulate digital currencies. But we welcome them as a form of innovation that is able to reduce the cost of financial transactions. Also, we regulate the activities around digital currencies if these activities hide specific risks.”