Singapore's Watchdog to Warn Crypto Exchanges and ICOs

MAS says it has cautioned the exchanges to seek authorization if trading digital tokens that are regulated under the Securities and Futures Act 
24 May 2018   1079

The Monetary Authority of Singapore (MAS), which performs functions of country's central bank, warned eight local crypto exchanges about the inadmissibility of futures contracts trading and digital tokens with the properties of securities without proper authorization from the regulator. This is reported on the Coindesk.

MAS representatives note that if the tokens traded on Singapore exchanges have properties that allow them to be classified as assets subject to the Securities and Futures Act (SFA), the trade in such coins must be immediately terminated before the regulator is given permission to operate as a authorized financial market operator.

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.
 

Monetary Authority of Singapore

In addition, local organizers of initial coin offerings (ICO) have also been warned about the inadmissibility of raising funds in Singapore. According to the regulator, ICO-tokens are equity instruments in the assets of companies, and therefore fall within the scope of SFA.

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.
 

Lee Boon Ngiap

Assistant managing director, MAS

According to representatives of MAS, not only issuers of ICO-tokens, but also other platforms that are intermediaries in the exchange of such assets and contribute to their dissemination, can bear responsibility.

Malaysia to Issue Law on Digital Currency

Starting from 15.01.2019, organizers of illegal ICO in Malaysia will face up to 10 years in prison
14 January 2019   110

The law on digital currencies and digital tokens of Malaysia will come into force on Tuesday,  The Star reports. From this point on, any citizen of a country who will be found guilty of conducting an unregistered Initial Coin Offering(ICO) or organizing a platform for exchanging digital currencies without authorization may face up to 10 years in prison and a fine of $ 245,000.

Malaysian Finance Minister Lim Guan Eng on Monday confirmed the information that the law enters into force on January 15. It is expected that the relevant legal framework will be fully defined before the end of the first quarter.

In accordance with the new law, digital currencies and tokens are considered securities and are regulated by the Securities Commission (SC).

Lim also noted that the financial instruments described in the law and related activities must first be approved by the SC and comply with all established requirements for securities.

In particular, we believe digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors. 
 

Lim Guan Eng
Finance Minister, Malaysia

According to Lim, SC will now develop regulatory requirements for ICO organizers and trading platform operators.

In November last year, Lim offered to oblige all cryptocurrency issuers in Malaysia to seek advice from the country's central bank.