Singapore to require ICO issuers a financial service licence
On August 1st, 2017, the Monetary Authority of Singapore issued a statement on the legal status of offers of digital tokens (ICO) in Singapore. The statement clarifies:
digital tokens may represent ownership or a security interest over an issuer’s assets or property. Such tokens may therefore be considered an offer of shares or units in a collective investment scheme.
Whereas digital tokens fall within the definition of securities, issuers of such tokens would be required to lodge and register a prospectus prior to the offers, unless exempted. Issuers or intermediaries of such tokens would also be subject to licensing requirements under the SFA and Financial Advisers Act (Cap. 110), unless exempted, and the applicable requirements on anti-money laundering and countering the financing of terrorism.