Singapore has Warned Eight Exchanges due to Security Concern

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Singapore Warned Eight Exchanges for Unregistered Securities Trading

Singapore’s de facto central bank, the Monetary Authority of Singapore or MAS, has warned eight digital token exchanges to stop trading cryptocurrencies.

According to the report, MAS states it has warned the exchanges for seeking authorization of digital asset trading which is regulated under the Securities and Futures Act (SFA).

The authority says:

“If the digital tokens constitute securities or futures contracts, the exchanges must immediately cease the trading of such digital tokens until they have been authorized as an approved exchange or recognized market operator by MAS.”

MAS has warned an initial coin offering (ICO) organizer has stopped them from selling tokens in the country. It says the project breached the SFA since the tokens as they represent equity ownership in a firm are considered securities.

The authorities also banned them from offering the token in Singapore and returned funds received from local investors.

Lee Boon Ngiap, assistant managing director at MAS, says, There has been an increasing number of cryptocurrency exchanges and ICOs in Singapore.

He said:

“If any digital token exchange, the issuer or intermediary breaches our securities laws, MAS will take firm action. The public should be aware that there is no regulatory safeguard if they choose to trade on unregulated digital token exchanges or invest in digital tokens that fall outside the remit of MAS’ rules.”

Nishanth Shetty

Nishanth Shetty is a technical writer, author and a crypto-advisor working at Cryptofame. Based in the city of dreams, Mumbai, on the west coast of India. He holds a bachelors degrees from Mangalore University. Nishanth has a myriad experience of technical writings for tech brands. His interests include technology, travel, and food.