The Monetary Authority of Singapore warned the trading floors about the illegality of dealing with securities that are distributed under the guise of digital money
Eight cryptocurrency exchanges from Singapore should immediately stop trading tokens that possess the properties of securities. The statement on this was published by the Monetary Authority of the country, which acts as the central bank.
The company must obtain a special permit for trading cryptocurrencies, which fall under the Securities and Futures Act. The organizers of projects for the initial placement of coins received a warning that it is forbidden to collect funds for this purpose on the territory of Singapore. Representatives of the regulator noted that ICO-tokens represent instruments for equity participation in the assets of companies, therefore they possess the properties of securities.
Responsibility will be borne not only by the organizers of such projects, but also by platforms that served as intermediaries in the exchange and facilitated their dissemination.
“The number of exchanges of digital tokens and offers of coins in Singapore is growing rapidly. We do not see the need to hinder their activities, if they are honest companies. However, if any exchange of digital tokens, the issuer or intermediary violates our securities legislation, MAS will take drastic measures, “the ministry said.
Earlier, Bloomberg said that the government of India can impose taxes on cryptocurrency transactions. In this case, the authorities recognize digital money as a commodity.