MAS Issues Advisory on Digital Tokens in Move to Further Regulate ICOs
- Move comes following growing number of ICOs attracting large and untracked investments.
The Monetary Authority of Singapore (MAS) has been one of the more accommodating regulatory authorities when it comes to cryptocurrency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe technology. It has been at the forefront of regulating this new market, choosing to not completely ban it as it understands the potential and the robustness of the technology involved.
In a further bid to regulate the market and warn gullible customers about the pitfalls, the MAS and the Commercial Affairs Department (CAD) have issued an advisory notice to the public regarding digital tokens, especially relevant given the recent proliferation of Initial Coin Offerings (ICOs).
In the advisory, the MAS and CAD have explained that digital tokens are issued as part of ICOs where the public are given tokens for investing in specific projects for which a white paper is issued.
These investments are taken in the form of BTC and ETH, and investors buy tokens in the hope that a given project will take off and become successful. If that happens, the value of the tokens is likely to go up and the investor would be able to make profits from his investment.
Investors Advised to do Due Diligence
The CAD and the MAS have advised the public to perform due diligence and understand the benefits and the risks involved before they invest in any ICO. Since most of the operators of such ICOs are online and in a foreign country, it is very difficult to track such operators, find their profiles and recover invested funds in case something goes wrong.
Most ICO sellers do not have a proven track record and hence these ICOs are open to very high speculation, as investors and traders do not base their decisions on any fundamentals, investing purely with the intention of making a quick profit.
It is also possible that some of these ICOs could be used as a means for money laundering and terrorist financing, as they allow the collection and movement of large amounts of money within very short spans of time, without much regulatory tracking or control.
The MAS and CAD advise that it would be ideal if people and entities are registered with the MAS, as it would help tracking and Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( . They reiterate that the public have to be very careful and do everything possible to check and confirm their understanding of the digital coin and the ICO before they choose to invest in it.
The Monetary Authority of Singapore (MAS) has been one of the more accommodating regulatory authorities when it comes to cryptocurrency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe technology. It has been at the forefront of regulating this new market, choosing to not completely ban it as it understands the potential and the robustness of the technology involved.
In a further bid to regulate the market and warn gullible customers about the pitfalls, the MAS and the Commercial Affairs Department (CAD) have issued an advisory notice to the public regarding digital tokens, especially relevant given the recent proliferation of Initial Coin Offerings (ICOs).
In the advisory, the MAS and CAD have explained that digital tokens are issued as part of ICOs where the public are given tokens for investing in specific projects for which a white paper is issued.
These investments are taken in the form of BTC and ETH, and investors buy tokens in the hope that a given project will take off and become successful. If that happens, the value of the tokens is likely to go up and the investor would be able to make profits from his investment.
Investors Advised to do Due Diligence
The CAD and the MAS have advised the public to perform due diligence and understand the benefits and the risks involved before they invest in any ICO. Since most of the operators of such ICOs are online and in a foreign country, it is very difficult to track such operators, find their profiles and recover invested funds in case something goes wrong.
Most ICO sellers do not have a proven track record and hence these ICOs are open to very high speculation, as investors and traders do not base their decisions on any fundamentals, investing purely with the intention of making a quick profit.
It is also possible that some of these ICOs could be used as a means for money laundering and terrorist financing, as they allow the collection and movement of large amounts of money within very short spans of time, without much regulatory tracking or control.
The MAS and CAD advise that it would be ideal if people and entities are registered with the MAS, as it would help tracking and Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( . They reiterate that the public have to be very careful and do everything possible to check and confirm their understanding of the digital coin and the ICO before they choose to invest in it.