The Monetary Authority of Singapore (MAS) has today announced that it has stopped an ICO issuer from proceeding with its securities token offering in Singapore.
Initial Coin Offerings (ICOs) have raised over $10 billion over the past two years, but reports indicate that nearly 80% of these fledgling startups will fail, either due to poor business planning, incompetent management teams, or the fact that they were an outright scam to begin with.
The ICO issuer had intentions to rely on an exemption under the Securities and Futures Act (SFA), but MAS had the final word, confirming that it cannot proceed with its securities token offering, until it can fully comply with regulatory requirements under the SFA.
Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS, commented on the news:
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. 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.