The Central Bank of Singapore dubbed the Monetary Authority of Singapore sent warnings to eight token trading platforms, asking not to provide digital asset trading services that are considered securities.
The announcement was made on 24 May through the MAS ‘website. According to it, the eight crypto exchanges are required to obtain authorization in order to continue providing the financial services as tokens are controlled by the Securities and Futures Act (SFA).
“If the digital tokens constitute securities or futures contracts, the exchanges must immediately cease the trading of such digital tokens until they have been authorised as an approved exchange or recognised market operator by MAS,” stated the authority.
The Monetary Authority of Singapore or MAS then addressed a warning to an ICO issuer regarding the sale of its tokens across the country. He was prevented from stopping his activity taking into account that he isn’t registered under the law in force. According to MAS, the issuer’s project hasn’t complied with the legislation, since tokens are recognized as securities in his situation. According to the announcement, the issuer returned funds collected to investors and suspended its financial activity in Singapore.
‘MAS has reiterated that digital token issuers, intermediaries and platforms that offer, facilitate or trade digital tokens are responsible for ensuring that they comply with all relevant laws,” wrote MAS.
According to Lee Boon Ngiap, Assistant Managing Director at MAS, too many token exchanges have been recorded in Singapore lately. “If any digital token exchange, issuer or intermediary breaches our securities laws, MAS will take firm action. The public should be aware that there is no regulatory safeguard if they choose to trade on unregulated digital token exchanges or invest in digital tokens that fall outside the remit of MAS’ rules,” he stated.