Central Bank of Singapore Warns Local Crypto Exchanges
May 25, 2018
The Monetary Authority of Singapore (MAS) issued a warning addressed to eight cryptocurrency exchanges of the country, where required them to stop trading tokens, which by the legislation of Singapore are considered securities and futures contracts.
The document says:
"MAS has reminded the eight digital token exchanges to seek MAS’ authorisation if the digital tokens traded on their platforms constitute securities or futures contracts under the Securities and Futures Act (SFA). <...> If the digital tokens constitute securities or futures contracts, the exchanges must immediately cease the trading of such digital tokens until they have been authorised as an approved exchange or recognised market operator by MAS."
In addition, MAS told that it warned an organizer of an unnamed ICO, tokens of which represented a stake in the company. MAS demanded to stop selling these tokens in Singapore, due to the violation of Securities and Futures Act. The organizer of the ICO complied with the demand, stopped selling tokens and returned money to Singaporean investors.
Assistant Managing Director of MAS Lee Boon Ngiap said in the press-release:
"The number of digital token exchanges and digital token offerings in Singapore has been increasing. We do not see a need to restrict them if they are bona fide businesses. But if any digital token exchange, issuer or intermediary breaches our securities laws, MAS will take firm action. The public should be aware that there is no regulatory safeguard if they choose to trade on unregulated digital token exchanges or invest in digital tokens that fall outside the remit of MAS’ rules."