Monetary Authority of Singapore Sees Tokens as Non-Securities

Monetary Authority of Singapore Sees Tokens as Non-Securities

In CoinDesk’s Consensus Singapore 2018 symposium, a representative of the Monetary Authority of Singapore (MAS) has spoken that the central bank has not yet considered any token as securities.

So far Singapore’s central bank perceived none of the tokens they considered are qualified to be regulated under its securities law. Damien Pang, the representative and MAS head of Technology Infrastructure Office, deem that different territories have differing views on the eligibility of what can be considered a security. Other regulators such as the US SEC will probably arrive at a different verdict than that of the MAS.

Pang discussed the guidelines in A Guide to Digital Token Offerings which was published by MAS in 2017. In the guidelines tokens were categorized into three separate types:

  • Utility Tokens — are mined solely for accessing particular services provided by the company. MAS has no intention to regulate this token type.
  • Payment Tokens — can be used as a means of payment and holds value. By the end of 2018, a payments bill will be made into law.
  • Security Tokens — possess a promise or rights to a company’s future earnings.

But the classification of the tokens is not immutable. According to Pang, over time and depending on present and future attributes of the tokens, their category may change.

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