According to a recent press release from the Singapore Exchange (SGX), it was made known that the exchange has provided a more straightforward guideline regarding the issuing of ICOs.
Rules are for Listed Companies not Tokens
The exchange made it known in the release that it has clarified the rules and guidelines targeted at companies looking to issue an ICOs and have it listed on the Singapore Exchange (SGX).
According to a statement coming from the CEO of the stock exchange’s regulatory subsidiary, SGX RegCo, Tan BoonGin, these rules and guidelines are not targeted at Token launched during ICOs, but towards the company. This is because the exchange does not list tokens, it only lists stocks.
Singapore Exchange (SGX) New Rules and Guidelines
According to the new guidelines, any company already listed on the exchange that is planning to conduct an ICO will have to consult with SGX RegCo in advance. Apart from this, such company is also mandated to provide a “legal opinion on the nature of tokens and an auditor’s opinion on how the ICO should be treated for accounting – both from “reputable” firms.”
The new guideline also stipulates that these companies need to make some disclosures they normally won’t need to make. The company is also required to provide in full details “the reason behind the ICO, the risks involved, how the raised funds would be used, planned know-your-customer (KYC) and anti-money laundering (AML) checks, and any impact on existing shareholders’ rights.”
Furthermore, the guideline requires the company to make sure that the ICOs are “properly” accounted for in their financial statements and that associated risks have been addressed.
Finally, companies seeking to issue a token are not allowed to conduct their ICOs directly. They are required to form a new subsidiary for the sole purpose of issuing an ICOs.