Singapore's central bank and financial regulator warned eight crypto banks against the facilitation of trading digital tokens as securities and futures with no payment obligations. prior approval.
In an announcement today, the Monetary Authority of Singapore (MAS) revealed it has called back to eight unnamed crypto trading platforms to obtain its authorization before offering exchanges digital tokens that "constitute" digital tokens.
"If digital tokens are securities or futures contracts, the exchanges must immediately stop trading these digital tokens until they are authorized as an exchange." approved or market operator recognized by MAS ". watchdog said in a statement.
The measures come at a time when the number of trading platforms and digital token offerings is "increasing" in Singapore, said Lee Bon Ngiap, MAS Capital Markets Officer
He pointed out that the authority did not repress the sector, but that it ensured that the industry complied with the relevant laws while encouraging legitimate businesses. Flouting warnings and legal compliance will see "firm action," he warned.
The head of the central bank said:
"We do not see the need to restrict them if they are bona fide companies, but if an exchange of tokens, an issuer or an intermediary violates our securities laws, MAS will take firm measures. "
MAS also curbed an initial offer of coins (ICO), warning the issuer for violation of the Securities and Futures Act (SFA). The central bank determined that the tokens of the OIC represented the property of the company and were therefore classified as a legal guarantee. In addition, the investor's offer was also made without a prospectus filed with MAS, a mandatory requirement.
The OIC issuer has since returned all investor funds and has ceased its offer to comply with the regulations, the statement added.
Singapore has revealed itself a bit of a haven for the cryptocurrency exchanges and issuers of the OIC as a result of China's comprehensive restrictive measures last year.
In November, MAS published its "Guide to Digital Token Offers", bringing clarity and recognition to the radical new form of fundraising fueled by cryptocurrencies.
More recently, a senior MAS official revealed that the central bank was assessing whether "additional regulations are needed for investor protection" in the domestic cryptocurrency sector.
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