The Monetary Authority of Singapore has no plan to regulate cryptocurrencies but remains alert to potential risks stemming from their use. The financial overseer has pulled the plug on an ICO.
The financial regulator warned an initial coin offering (ICO) issuer to stop the offering of its digital tokens in Singapore, according to a media statement on Thursday. The offer was made without a MAS-registered prospectus, which is a Securities and Futures Act (SFA) requirement. The issuer since has halted the offer and returned all funds it had received from Singapore-based investors.
The Monetary Authority of Singapore (MAS) also cautioned eight digital token exchanges in Singapore warning them not to facilitate trading in digital tokens that are securities or futures contracts without MAS’ authorization.
Firm Action
In an interview in October 2017, MAS Managing Director Ravi Menon said he could see no basis for wanting to regulate cryptocurrencies. Instead the country's regulator will look closely at the activities involving cryptocurrencies and consider what kind of risks they pose that would require a regulatory response.
«We do not see a need to restrict them if they are bona fide businesses,» said Lee Boon Ngiap, assistant managing director capital markets at MAS. «But if any digital token exchange, issuer or intermediary breaches our securities laws, MAS will take firm action.»
