Singapore Financial Watchdog, the Monetary Authority of Singapore (MAS), has recently released some new guidelines targeted at digital token offerings.
The Monetary Authority of Singapore (MAS) has New Guidelines
A recent report has made it known that the updated guideline is centred on providing more clarity on the various requirements of the MAS when it comes to digital asset offering. The guideline also enunciates the importance of reporting, for entities offering capital markets products that are not classified as securities.
According to the report, the new guidelines also state that:
“offerings of digital tokens are categorized as “capital markets products” under the Securities and Futures Act (SFA). “It continues by making known that: “MAS will determine compliance with Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) requirements for offerings of capital markets products. Any entity that offers capital markets products will be required to submit a prospectus in accordance with SFA requirements.”
In this context, Capital markets products have been defined as “any securities, units in a collective investment scheme, derivatives contracts and spot foreign exchange contracts for purposes of leveraged foreign exchange trading.”
It is important to note that some entities may get exempted from the updated guidelines, even though they qualify under the class of products to be regulated. The MAS has however made it known that this is usually a bit more technical than it sounds, as some certain requirement needs to be met before qualifying for an exemption. According to the MAS, “an offering may not require a prospectus if it is a “small personal offer” that does not exceed the equivalent of 5 million Singapore dollars ($3.66 million) within any 12-month period.” It was also stated that: ” an Exemptions will also be made for any “private placement offer” to up to 50 people within a 12-month period, as well as for offers solely targeted at institutional or accredited investors.”
It was also confirmed that: “any exemptions for small personal offers, private placements or offers to accredited investors will still be subject to advertising restrictions.”