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Singapore's central bank, the Monetary Authority of Singapore (MAS), recently published an update of regulations for companies wishing to conduct initial coin offerings (ICOs) in the city-state. MAS states that the updated guidelines cover both security and utility token sales while Singapore seeks to establish a stable presence in the cryptocurrency narrative developing in Southeast Asia.
Updated ICO Payments Framework
In a report titled "Guide to Offers of Digital Tokens", MAS provided an updated set of guidelines for ICOs in the city-state. According to the new regulations, all token sales must include an offer plus a prospectus based on the existing provisions of the Securities and Futures Act (SFA).
Bids of less than $ 5 million or private sales of less than 50 people are, however, exempt from the included prospectus. In both cases, the exemption only covers offers within 12 months.
The updated guidelines also include rules for ICO platform operators and other intermediaries such as exchange platforms, financial advisors, etc. The new rules state that all these brokers must have the necessary licensing requirements. Furthermore, both issuers and intermediaries must act in accordance with anti-money laundering (LMA).
For Singapore, its new ICO regulatory framework applies not only to security token sales, but also to utility tokens. Therefore, utility token issuers will also comply with AML and Terrorist Financing (CFT) regulations.
The updated guidelines are a follow-up to the payment services law that is already in the country's parliamentary scrutiny. The move marks a shift from a neutral approach to a more practical approach to sector regulation.
Pursue a robust agenda of Cryptocurrency and Blockchain technology
For Singapore, the goal seems to be to strengthen its regulatory framework on cryptocurrency rather than adopt a hard line against the industry. This position is in many ways indicative of the approach taken by the countries in Southeast Asia.
To achieve this, the city-state government is seeking to extend the scope of the MAS regulatory mandate to include digital currencies. MAS is also trying to help cryptocurrency companies to secure advantageous banking partnerships.
In addition to the cryptocurrency market, Singapore is also taking giant steps in the adoption and use of blockchain technology. In November, Live Bitcoin News reported on the partnership between Singapore Exchange (SGX) and MAS to launch a block-based delivery versus payment regulation framework (DvP).
What do you think of the updated ICO regulations in Singapore? Let us know your thoughts in the comments section below.
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