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MAS warns 8 Singapore based digital token exchanges over unregistered securities trading

Country Special

The Monetary Authority of Singapore (MAS) has warned eight digital token exchanges in Singapore not to allow trading in digital tokens that are securities or futures contracts without MAS’ authorisation, it said in a statement released today 24th May. It has also warned an Initial Coin Offering (ICO) issuer to stop the offering of its digital tokens in Singapore.

MAS has reminded the eight computerized token trades to look for MAS’ authorisation if the advanced tokens exchanged on their platforms constitute securities or future contracts under the Securities and Futures Act (SFA). Computerized token trades regularly permit the purchasing and offering of advanced tokens utilizing fiat cash, and furthermore encourage the trading of advanced tokens between their customers. In the event that the digital tokens constitute securities or prospects gets, the trades should quickly stop the exchanging of such advanced tokens until the point that they have been approved as an approved trade or perceived market administrator by MAS.

MAS assistant managing director for Capital Markets Lee Boon Ngiap said that

“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”

MAS has also directed an ICO issuer offering advanced tokens to Singapore-based investors to quit doing as such. It has found that the issuer had breached the SFA as its tokens represented to value ownership in an organization and that is why it would be considered as securities under the SFA. The offer was made without a MAS-registered plan, which is a SFA necessity. The issuer has stopped the offer and has taken actions to comply with MAS’ regulations. It has also returned all assets got from Singapore-based investors.

Mr Lee Boon Ngiap further stated that

“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.”

 

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