Cryptocurrency ICOs have attracted a lot of attention recently. More specifically, they attract a lot of scrutiny from regulators around the world. The Monetary Authority of Singapore will regulate the issuance of digital tokens moving forward. All projects taking this route will be treated according to the Securities and Futures Act. This is an interesting decision by the MAS that will affect the future of ICOs in Singapore. Then again, these measures are to be expected.
Over the past few months, cryptocurrency ICOs have become all the rage. Everyone and their dog has a project they need money for these days. Most of these concepts will ultimately fail without a shadow of a doubt. Just because people give you millions of dollars doesn’t mean you will eventually succeed, though. Moreover, all of these projects have been able to go on without regulation or scrutiny, which is rather strange.
MAS Scrutinizes Cryptocurrency ICOS and Digital Tokens
About a week ago, the SEC announced they would start to regulate ICO soon. So far, no action has been undertaken, but that may change in the future. Singapore is now following suit with a similar approach. In fact, the MAS will regulate the offer or issuance of digital tokens in the country as of yesterday. All of these projects will be regulated under the Securities and Futures Act. This does not bode well for anyone looking to host a cryptocurrency ICO in Singapore.
For the time being, the MAS is assessing how they will regulate these risks. Although cryptocurrency itself is not regulated in Singapore, these tokens raise some concerns. More specifically, there is the risk of money laundering and terrorist financing. Although these ICOs would not be used for such a purpose, it isn’t impossible some illegal activity is taking place. Regulating this business model is necessary, to say the least. Holding issuers of tokens accountable is of the utmost importance, as they can just collect money and never deliver on their promise.
It will be interesting to see how all of these regulatory decisions affect cryptocurrency ICOs in the future. It is evident this market can’t go on without regulation for much longer. Investors need to be protected from nefarious individuals looking to raise money and never build a project whatsoever. Whether or not Singapore and the MAS will be the first to do so, remains to be determined. It is a very intriguing development, to say the least. Far too much dumb money is circulating in ICOs these days, that much is evident.
Header image courtesy of Shutterstock
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
