On 1 August 2017, the Monetary Authority of Singapore (MAS) clarified through a media release that an offer or issue of digital tokens would be regulated if these tokens constitute products which are regulated under the Securities and Futures Act (SFA). In doing so, the MAS sent a strong signal that it would focus on the substance of the transaction, even if it is presented within the "cryptocurrency" wrapper.
MAS' clarification comes in the wake of an increase in the number of initial coin or token offerings (ICOs) in Singapore. In June 2017, it was reported that blockchain startup TenX had raised close to US$80 million from a token sale. A Singapore based startup, Cofound.it, also launched the sale of its own digital currency in May 2017 to fund building of its blockchain-based platform to connect start-ups with investors and experts for funding and advice. Further ICOs are reported to be planned later this year.
This bulletin provides an introduction into ICOs and touches upon some of the market developments and regulatory issues surrounding ICOs and digital tokens. Please click here for more details.
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Karen Anderson
Consultant, London
Susannah Cogman
Partner, London
Elizabeth Head
Of Counsel, London
Clive Cunningham
Consultant, London
Marina Reason
Partner, London
Kelesi Blundell
Partner, London
Hywel Jenkins
Partner, London
Chris Ninan
Partner, London
Jon Ford
Partner, London
Simone Hui
Of Counsel, Hong Kong
Chee Hian Kwah
Director, Prolegis LLC, Singapore
Valerie Tao
Knowledge Lawyer, Hong Kong
Cat Dankos
Senior Regulatory Consultant, London
Disclaimer
Herbert Smith Freehills Kramer LLP and Prolegis LLC have established a Formal Law Alliance licensed by the Legal Services Regulatory Authority of Singapore known as Herbert Smith Freehills Kramer Prolegis Alliance, with Singapore law advice provided by Prolegis LLC. The two firms cooperate closely in Singapore to deliver a complementary and seamless legal service.