20 December 2018
On 30 November 2018, 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 applicable securities laws.
The Guide provides general guidance on the application of the securities laws, i.e. the Securities and Futures Act 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. Among other things, the Guide now makes reference to the Payment Services Bill which was tabled in Parliament on 19 November 2018. The Guide has also been expanded with the addition of five new case studies.