Singapore Exchange (SGX) Shares Clarity On Launching And Running Initial Coin Offerings (ICOs)
Publicly-Listed Companies In Singapore Get More Clarity On Launching And Running Initial Coin Offerings
The regulatory framework for cryptocurrency in any country is essential to helping cryptocurrency to thrive. Singapore has been one of the most welcoming nations for the digital currency, and they maintain that by keeping understandable rules for exchanges. According to a recent report, the Singapore Exchange (SGX) decided to make the rules clearer for any publicly listed company that decides to hold an initial coin offering (ICO).
Tan Boon Gin, the CEO of an SGX subsidiary called SGX RegCo, made the determination that no token sold through an ICO would be listed on the exchange. Still, these rules only apply to the companies, and they will only be restricted from the exchange if they do not consult with them in advance. Furthermore, the company has to inform the exchange regarding how the tokens should be used, and an auditor has to assets the best way to handle the accounting of the tokens.
In order to be approved by the exchange, the companies are required to disclose the purpose of the ICO, potential risks, how the company plans to use the capital, and scheduled KYC/AML Checks. They would also have to determine any impact that may alter the rights of shareholders. Financial statements and any other applicable risks are crucial to the financial profile of any ICO.
If the Securities and Futures Act determines that the tokens are considered securities, the issuers of the token could end up having to use a subsidiary to launch the ICO. The final requirement is that issuers need to protect their own interests an that of the shareholders during and after the ICO. Gin added,
“The issuer’s board is ultimately responsible for maintaining a robust system of risk management and internal controls.”
The first public firm to launch an ICO in Singapore was Y Ventures Group, which had goals of reaching $50 million in funding with their blockchain-centered e-commerce system. However, at least so far, the Monetary Authority of Singapore has not approved any token that is classified as a security. This information was reported to CoinDesk by Damien Pang, who heads up the MAS technology infrastructure office for fintech and innovation, in a statement two months ago.