Several cryptocurrency exchanges were sent a warning from the Monetary Authority of Singapore (MAS). The warning arose due to the inadmissibility of selling securities under the guise of cryptocurrency.
The sites, the cryptocurrencies of which are regarded as securities or futures contracts, must receive permission from the MAS for further work.
“If the digital tokens constitute securities or futures contracts, the exchanges must immediately cease the trading of such digital tokens until they have been authorized as an approved exchange or recognized market operator by MAS.”
At the same time, representatives of the MAS said that the issuer of ICO was also warned by the agency because of the offer of digital token to investors from Singapore. The issuer violated the legislation Securities and Futures Authority (SFA), as his digital moments assumed the receipt of shares of the company, which ensured their status as “securities”. The sale of tokens began without the approval of the MAS. On receiving the warning, the issuer ceased illegal activities and began to correct the situation by following the rules of the MAS. The revenues received from Singaporean investors were returned.
The number of cryptocurrency exchanges and digital coin sales, which is growing daily, is also noted by the MAS.
Also, the management claim that they do not see the need to restrict them if they are bona fide enterprises. But if any exchange, issuer or intermediary violates the securities laws, the MAS “will take firm action.”