Latest reports on cryptocurrencies is here and one of these reports relate to ‘keep crypto enthusiasts posted about the developments of ICO’ connected to the Singapore Central Bank!
Well, for the starters, MAS or the Monetary Authority of Singapore has begun to update its guide associated with those businesses which wish to ‘raise capital through Initial Coin Offerings’. It indeed comes as a news most waited because now people would be in a position to understand the minute details in a better manner.
New Payments Framework: Monetary Authority of Singapore
Before making it known by all regarding the benefits of utilizing Initial Coin Offerings, Monetary Authority of Singapore had introduced ‘New Payments Framework’ a draft which now seems to be complete with new rules added to its pages. It is therefore advised to all the readers to go through this article and then make a note of the points listed here as they shall serve you in the longer run.
What does Singapore Central Bank have to say about ICOs?
A list of instructions has been put down in black and white so as to enable individuals to have a grip on what exactly does the Singapore Central Bank have to tell crypto enthusiasts. For the beginners, Anti Money Laundering or AML as well as Countering Financing of Terrorism or CFT policies are to be taken care of and this is the first and foremost aspect to be taken a note of.
Every individual who gets involved with an ICO, so as to enable raising of capital for a business will be hereby addressed as an ‘intermediary’. Hence, it becomes a necessity for all intermediaries to adhere to the laws laid down by the authorities.
Another of the important aspects here is that all people who are a part of ‘raising capital for business via Initial Coin Offerings’ must have a license else they would have to face dire consequences. As an example, it is better for an ICO issuer to get Capital Markets Services License while MAS or the Monetary Authority of Singapore has to approve besides acknowledging Digital Asset Exchange. Or for that matter, Financial Advisory License is to be given to the Financial Advisors.
Only when these rules are followed, will MAS approve transactions whilst permitting businesses to go ahead with their plan of raising capital through ICOs! Another of the rules to be noted is: it is not a problem if tokens are not ‘securities’, however, they have to be under the Anti Money Laundering and the Countering Financing of Terrorism Acts.
With above stated changes coming soon, it is now to see as to how would these impact on the way ICOs worked in a country like Singapore. Till then remember, the new Payment Services Bill or PSB in Singapore has allowed for bringing ‘digital currency’ under laws for both international as well as domestic money transfers.
Interestingly, the new Payment Services Bill of Singapore has made it possible for digital currency to be working under the Foreign Exchange Transactions! This news is certainly one of those that cannot be given a miss.