Singapore regulator issued warning to crypto-exchanges and ICO-projects

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Performing the functions of the central bank The Monetary Authority of Singapore (MAS) warned eight local cryptographers about the inadmissibility of trading in futures contracts and digital tokens with the properties of securities without proper authorization from the Singapore regulator. This is reported on the agency’s website.

MAS representatives note that if the tokens traded on Singapore exchanges have properties that allow them to be classified as assets subject to the Securities and Futures Act (SFA), the trade in such coins must be immediately terminated before the regulator is given permission to operate as an authorized financial market operator.

In addition, local organizers of initial coin offerings (ICO) have also been warned about the inadmissibility of raising funds in Singapore. According to the regulator, ICO-tokens are equity instruments in the assets of companies, and therefore fall within the scope of SFA.

According to representatives of MAS, not only issuers of ICO-tokens but also other platforms that are intermediaries in the exchange of such assets and contribute to their dissemination can bear responsibility.

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“The number of digital token exchanges and digital token offerings in Singapore has been increasing.  We do not see a need to restrict them if they are bona fide businesses.  But if any digital token exchange, issuer or intermediary  breaches our securities laws, MAS will take firm action.  The public should be aware that there is no regulatory safeguard if they choose to trade on unregulated digital token exchanges or invest in digital tokens that fall outside the remit of MAS’ rules,” said Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS.

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