Singaporean Monetary Authority Halts ICO Token for Regulatory Breach

Tabassum
January 24, 2019 Updated May 22, 2025
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An official website of Monetary Authority of Singapore (MAS) has published a report of ceasing a security token offering. According to the statement, the firm wasn’t authorized for a certain offering to proceed under the Securities and Future Act (SFA).

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MAS Ceased ICO Offering

The news broke out on Thursday, Jan 24, 2019, via the official website of MAS wherein, the blog post, entitled ‘ MAS halts Securities Token Offering for regulatory breach’ states about unnamed ICO violating the law. However, the name of ICO or the company behind offerings is still out of sight but the agency has warned issuer to stop securities token offerings in Singapore. Moreover, the unnamed token found advertising their products/services on Linkedin openly.

Further, it states that the firm is not supposed to proceed token offering in Singapore until it complies with regulatory regime following Securities and Future Act (SFA). Additionally, MAS addresses investors and caution them to have due diligence before investing.

Reason Behind Halt Order

The same blog also claimed that the firm behind ICO planned on using ‘an exemption in Singapore’s Securities and Future Act’ means that the issuer can sell their offerings to ‘accredited investors’ only. However, with this process, issuers are free to make an offer to these accredited investors (high profile/wealthier investors) without having to register a prospectus with MAS. Through this, investors will gain a right to hold ‘particular number of tokens before they invest’. Having said that, the issuer began advertising their tokens on Linkedin social media. Although, this wasn’t the point for halt, but regulators have caught the ICO’s advertisement on Linkedin was redirecting these investors and the general public (as a whole) to invest in the ICO – which is not permissible in the exemption clause.

As a result, MAS ceased the securities offering of the firm. Following such cases, regulatory frameworks on crypto assets may have more stiffen soon in Singapore. Addressing the issue, Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS said in a statement that;

“Where an offer is made to the public, a prospectus is required to ensure that investors are provided with all the information to make informed investment decisions. He continued,

“Some offers may be made without a prospectus if they are limited to a restricted group of persons or to those who have the means to look after their own interests. Such offers are subject to strict conditions such as advertising restrictions. MAS will not hesitate to act if issuers contravene the disclosure requirements under the SFA.”

Therefore, once the offer is made to the public in large, it must comply with regulations and as such investors must be conversant with all necessary information.

What’s your point on MAS decision on such offerings? share your thoughts.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.