The Monetary Authority of Singapore (MAS) has announced that it supports the regulation of the issuance of digital tokens or initial coin offerings (I
The Monetary Authority of Singapore (MAS) has announced that it supports the regulation of the issuance of digital tokens or initial coin offerings (ICOs).
This could be done under the Securities and Futures Act, as cryptocoinnews.com wrote in an article published today.
In the meantime, Singapore experiences an increase of token sales as a way of rising funds. In addition, this is in line with the opinion of the US Securities and Exchange Commission (SEC).
“MAS’ position of not regulating virtual currencies is similar to that of most jurisdictions. However, MAS has observed that the function of digital tokens has evolved beyond just being a virtual currency. For example, digital tokens may represent ownership or a security interest over an issuer’s assets or property.”, as MAS wrote in their press release.
Commenting on MAS`s statetement, David Lee, Professor of Fintech and Blockchain at Singapore University of Social Sciences, said as quoted by todayonline.com:
“It is a timely reminder for those dealing with digital tokens not to allow for the possibility of money laundering and terrorist financing.”
“Having said that, there are still a lot of scams out there that unless the public understand the technology or complexity, they should not be involved with initial coin offerings, token sales or cryptocurrency.”, as he underlined.
Other experts have expressed a positive view on the issue of digital money:
“Digital money is certainly beneficial for us. From a business point of view, transactions are made in seconds. With stored money in the accounts, customers can use the credits to pay for any small amount without withdrawing constantly from their bank accounts. It saves a lot of hassle for customers and makes payments faster.”, as co-founder of online shopping platform Ezbuy, Wendy Liu pointed out.
Fintech digital payments platform SoCash`s CEO Hari Sivan has also commented in an interview with todayonline.com:
“From our perspective, digital payments are extremely important – the moving of money digitally – but we generally stay away from storing virtual money.”
“Digital token – assigning money to something, is sometimes like a Ponzi Scheme. It makes sense for the usage of these representing ownership over an asset or property to be regulated and is the right thing to do, in case the start-up doesn’t deliver.”, he added.