MAS Halts Security Token Offering In Singapore, Issues Warning On Websites Soliciting "Cryptocurrency" Investments

On 24 January 2019, the Monetary Authority of Singapore ("MAS") warned a digital token issuer (the "Issuer") not to proceed with its securities token offering in Singapore. Click here to access the MAS notice of 24 January 2019 in relation to the said warning.

The Issuer had intended to rely on an exemption under the SFA, which allows it to make an offer of securities to accredited investors without registering a prospectus with MAS, subject to certain conditions, including a restriction against advertising the offer. According to MAS, the Issuer (which was not named by MAS) was legally advised, had sought to conduct a global offering of securities tokens.

The Issuer failed to comply with the advertising restriction when its legal advisors put out a post on LinkedIn calling attention to the offer, which was made accessible to the public.