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New lease of life for ICOs
Jamari Mohtar | 01 Dec 2017 00:30
123RF

A new lease of life is in the offing for the Initial Coin Offering (ICO) market when it got a wake-up call from Singapore’s financial regulator on Nov 15 in the form of a detailed guideline on digital token offerings. This followed from the Monetary Authority of Singapore’s (MAS) announcement in August that it would consider some digital tokens as capital market-like securities.

The city-state is not the first country to make this announcement. In July, the US Securities and Exchange Commission (SEC) had ruled that some of the digital coins for sale in ICOs are actually securities and thus, subject to the agency’s regulations.

The SEC had even charged in September two companies running ICOs with defrauding investors and selling unregistered securities. The owner of the two firms, claiming his tokens were backed by real estate and diamonds, had raised US$300,000 from investors by just putting a white paper on a website.