Singapore’s de facto central bank has published new guidelines on initial coin offerings (ICOs), outlining how token sales would be viewed under its securities laws.
According to a Nov. 14 statement from the Monetary Authority of Singapore (MAS), tokens sold through the blockchain funding model may be considered securities under certain circumstances, citing Singapore’s Securities and Futures Act (SFA) as well as the Financial Advisers Act.
The MAS said:
“Offers or issues of digital tokens may be regulated by MAS if the digital tokens are capital markets products under the SFA. Capital markets products include any securities, futures contracts and contracts or arrangements for purposes of leveraged foreign exchange trading.”
The new report includes several case studies, including one detailing a token tied to a computing power-sharing platform (which wouldn’t count as a security) and another that is focused on a token connected to a startup investment fund (which would count as a security).
The guidelines also shore up earlier statements from the MAS. In August, officials stated that some token sales would be subject to securities laws on the basis that the cryptographic data sold would constitute kinds of debentures or stakes in collective investment schemes…
Source: Singapore’s Central Bank Outlines When ICOs Are and Aren’t Securities
