MAS regulates digital tokens
The Monetary Authority of Singapore said on Tuesday that it will regulate the offer or issue of digital tokens in Singapore, if the digital tokens constitute products regulated under the Securities and Futures Act. MAS’ clarification comes in the wake of a recent increase in the number of initial coin or token offerings, which aim at raising funds, in the city-state. MAS said a digital token is a cryptographically-secured representation of a token-holder’s rights to receive a benefit or to perform specified functions. It considered virtual currency as one particular type of digital token, and said it is assessing how to regulate money laundering and terrorist financing risks associated with activities involving digital tokens that do not function solely as virtual currencies. The authority added that where digital tokens fall within the definition of securities in the Securities and Futures Act, issuers of such tokens would be required to lodge and register a prospectus with MAS prior to the offer of such tokens, unless exempted.