29 April 2019
On 5 April 2019, the Monetary Authority of Singapore (“MAS”) released an updated version of “A Guide to Digital Token Offerings” (“Guide”).
The Guide was first released by MAS on 14 November 2017 following MAS’ clarification on 1 August 2017 that if a digital token constitutes a product regulated under the securities law administered by MAS, the offer or issue of digital tokens must comply with the relevant laws. The Guide was last updated on 30 November 2018.
The Guide provides general guidance on the application of the Securities and Futures Act (“SFA”) and the Financial Advisers Act, in relation to offers or issues of digital tokens in Singapore. The Guide also emphasises that the MAS Notices on Prevention of Money Laundering and Countering the Financing of Terrorism may apply.
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, units in a collective investment scheme, derivatives contracts and spot foreign exchange contracts for purposes of leveraged foreign exchange trading. MAS will examine the structure and characteristics of, including the rights attached to, a digital token in determining if the digital token is a type of capital markets products under the SFA.
Among other things, the Guide now makes reference to the Payment Services Act which was passed in Parliament on 14 January 2019.