As far the Public Securities Association is concerned, investors are not divided into any categories. In its turn, the SAT classifies investors into 4 major groups. The first one is called “retail customers” and it denotes any kind of investor, excluding expertб institutional and accredited investors.
‘An expert investor’ stands for an individual engaged in acquiring, disposing or possessing of CMPs.
According to the SAT, accredited investors are defined as:
- individuals with NPAs exceeding two million US dollars;
- individuals with an annual income of no less than three hundred thousand US dollars;
- corporate entities with NPAs exceeding ten million US dollars.
An ‘institutional investor’ is defined as such that gets controlled by financial regulators or governments.
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Rules and Limitations Governing ICOs in Singapore
The Singapore Exchange imposes a number of requirements on companies undertaking ICOs:
- Prior to undertaking any ICOs, they are to familiarize themselves with the exchange’s guidelines and make any corresponding disclosures. Those offering digital tokens are to seek legal advice regarding their security and utility tokens, as well as seek an opinion of an auditor regarding accounting-related specifics of the ICO.
- Those engaging in the issue of digital tokens are to make this information available to their stakeholders:
- reasons for undertaking the ICO;
- potentials risks stemming from the ICO;
- how the funds obtained during the ICO will be used;
- accounting-related specifics of the ICO;
- risks stemming from money-laundering schemes;
- how the funds owned by the issuer will be used for the conduction of an ICO;
- financial consequences of issuing tokens for the issuer;
- how stakeholders’ rights may be affected.
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Rules and Limitations Governing Cryptoassets in Singapore (STOs)
There is no specific legal framework governing financial activities in Singapore as far as cryptocurrencies are concerned. To deal in CMPs, an issuer may need to apply for a CMSL license which is required for trading in CMPs. As per MAS requirements, CMSL holders are to conform with the AML legislation. Mediators involved in facilitating issuance or offerings of digital tokens may also need to conform with the SFA and FAA guidelines.
Rules and Limitations Governing Stablecoins
If they are deemed securities, stablecoins are governed by applicable provisions of the SAT. If a stablecoin is governed by the Securities and Futures Authority, all the aforementioned rules and limitations apply to it as well. According to the Public Securities Association, a stablecoin tied to a fiat currency can be regarded as e-money, while those of them that aren’t can be defined as DPTs.
Those wishing to deal in DPTs are to apply for an SPI or MPI license, if the total value of their annual transactions amounts to three million dollars or more. Those involved in e-money issuing are to apply for an MPI license if the total value of their annual transactions amounts to five million dollars or more.
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Are There Any Restrictions Imposed on Investors Wishing to Launch an ICO in Singapore?
Generally speaking, those investing in ICOs and stablecoins face no restrictions, provided the cryptoassets they deal in are not considered securities.
Are There Any Limitations Placed on Investors Following the Initial Offering?
In general, those investing in ICOs and stablecoins face no restrictions, provided the cryptoassets they deal in are not considered securities. Looking for a professional consultation regarding governing investments in cryptoassets in Singapore? Look no further! IQDecision have got you covered! Our lawyers are always on standby to provide you with the latest information about the subject you’re interested in!