The issued guide provides for general points relating to the application of Securities Law administered by the Monetary Authority of Singapore (MAS) in relation to offers or issues of digital tokens in Singapore. As per the guide, digital tokens may constitute securities and be regulated by the MAS if they fall within the definition of “capital market products” under the existing laws. This could mean any securities, futures contracts, contracts or arrangements for the purposes of leveraged foreign exchange trading, and such other products as may be prescribed. A digital token may constitute a share, a debenture or a unit in a collective investment scheme (CIS). A person may only make an offer of digital tokens which constitute securities or units in a CIS if such an offer complies with relevant regulations. This includes the requirements that the offer must be made in or accompanied by a prospectus that is prepared in accordance with the SFA and is registered with MAS. MAS has observed that the following types of intermediaries typically facilitate offers or issues of digital tokens
- a person who operates a platform on which one or more offerors of digital tokens may make primary offers or issues of digital tokens,
- a person who provides financial advice in respect of any digital tokens,
- a person who operates a platform on which digital tokens are traded.