Singapore Authorities Issue Warning On Digital Tokens

The Monetary Authority of Singapore (MAS) and Commercial Affairs Department (CAD) have issued advice to consumers on the potential risks of digital token and virtual currency-related investment schemes.

Members of the public need to "exercise due diligence to understand the risks" involved in investing in initial coin (or token) offerings (ICOs), and other schemes involving digital tokens, the advice said. 

Virtual currency, such as bitcoin and ether, is one type of digital token, but these tokens are also being marketed as investment opportunities. The tokens can represent ownership of assets of property, or over a debt owed by the seller, the advice said.

These investment tokens are typically sold to consumers in exchange for virtual currency or cash, with details of the business proposal set out in a 'white paper' published online.