Singapore is the most prominent South Asian city-state. Recently Singapore made another step towards cryptocurrency.
That is why this sphere is developing rapidly and a great number of initial coin offerings registered here. The legislation in Singapore is clear. The authority periodically reviews the main provisions and sets up new governmental bodies.
The main body on the financial market is the Monetary Authority of Singapore. Moreover, it is a governmental bank. This institution regulates relations concerning currency and securities emission, insurance and banking. It also carries out general supervision of the financial sector.
The main legislative act is the Securities and Futures Act. This document forms the basis for the government and business activities in the country.
It is worth noting that this document perceived more as a guide. Nevertheless, it is worth adhering. One of its main provisions is connect with digital token offerings. They can be consider as capital market products. They include securities, futures contracts, contracts or arrangements for foreign exchange trading or leveraged foreign exchange trading and so on.
If the digital token is considered as a product related to securities, it should be regulated by the specific securities laws. They are call SFA – Securities and Futures Act, and FAA – Financial Advisers Act.
In case the digital token falls within the jurisdiction of SFA, you need to apply Prospectus Requirements. You will freed from the liability under the following circumstances:
You are free to contact a qualified intermediator, who will help you to offer or issue digital tokens. There is a great number of such intermediaries in Singapore. Pay attention to the fact, that they must have a license under the SFA or be recognize by the FAA.
Now we can predict one thing: the government is friendly towards cryptocurrencies. This loyal attitude is manifest in the policy of the MAS. Its leadership states that cryptocurrencies can develop and strengthen the financial market in Singapore. This means that in the future laws will be softened, simplified and adapted to the requirements of the business.
Nevertheless, we should not forget about the strictness of the law in Singapore. Any violation, even the smallest, will have consequences. This applies to both the offender and the entire financial sphere. Even with a single violation, the government can tighten the law for the business in common.
For advice on obtaining a license for cryptocurrency in Singapore, please contact our specialist.
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