Launch Your ICO in Singapore

Updated on Tuesday 20th February 2018

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Initial coin offerings (ICOs) are a new form of raising capital through cryptocurrencies. ICO is used for fintech businesses and for setting up a hedge fund startup or other types of investment funds, by employing  blockchain technology. Since ICOs have only recently been introduced as a new form of funding, most of the jurisdictions in which this method is available do not have a regulatory framework, but in the last several months, local financial authorities, including the one in Singapore, worked actively for establishing certain policies regarding cryptocurrencies and ICOs
 

Regulatory framework for ICOs in Singapore 
 

Foreign businessmen interested in how to start a fund in Singapore will need to comply with the regulations established by the main financial authority, the Monetary Authority of Singapore (MAS). In the case of initial coin offerings, also known as digital token offerings, certain regulations may apply, as long as the tokens can be considered securities
 
MAS issued both in August 2017 and November 2017 important announcements regarding the way in which this investment activity can be regulated under the local legislation. 
 
Specific ICO activities and sales can fall under the regulations of the Securities and Futures Acts and the Financial Advisers Act
 

What are digital tokens in Singapore?
 

According to the MAS viewpoint, a digital token represents a cryptographically secured representation of a holder’s right to obtain a benefit or to perform specific operations. MAS also declared that a digital token evolved in being more than a virtual currency and thus, it can be categorized by the functions that have been observed in the last years. 
 
As presented by MAS, investors interested in how to start an investment fund in this country through ICOs may choose from the following types of digital tokens:
 
virtual currency;
protocol coins;
asset backed tokens
 
Depending on the ICOs activities carried out in Singapore, the digital tokens can fall under the above mentioned rules of law. If so, it is necessary to file a prospectus with MAS, which will require the investors to obtain licenses for their investment activities
 
Investors may contact our team of affiliates in Singapore for in-depth information regarding the manner in which ICOs can be launched in this country.