The Monetary Authority of Singapore and the central bank have issued a warning to about 8 token exchanges. The warning emphasizes the fact that the exchanges should not allow digital token trading related to future contracts or securities.
The digital token trading is only permitted to the authorized exchanges. However, the positive side of the picture is that the Monetary Authority of Singapore has not made any indication that these exchanges are involved in any suspicious activities. Secondly, no complaints have been registered against these exchanges.
MAS is in action and has also signaled an ICO issuer to stop its initial coin offering. The reason the ICO was stopped is that the tokens represented equity which is security. The token cannot be offered without MAS registration. The ICO issuer has addressed MAS concern on an immediate basis and has halted the ICO.
Secondly, the ICO issuer has taken every possible step so that it can comply with the regulations of MAS. Currently, all the funds of the investors have also been returned to them by the ICO issuer. All this shows one positive thing, and that is MAS is in command in Singapore, and the digital currency community and businesses have to live by the rules set by MAS.
The truth is that Singapore can be termed as the center for token sales and this is why it is necessary that the financial authorities need to be in command here otherwise it will become difficult to maintain a level of transparency.
If we analyze the current scenario, then the number of digital token offerings and exchanges are increasing in Singapore with every passing day. This is one of the reasons that the financial authorities need to be vigilant and monitor every financial activity taking place. These steps will eventually protect the investors from losses.
The exchanges should also ensure that they follow the guidelines set by MAS. The benefit of this practice is that the exchanges can operate without any hesitance and resistance when they follow the guidelines defined by MAS. One thing is quite clear, and that is digital currency will go a long way in Singapore.
The reason is that things are organized, and the financial authorities are on the right track. If the exchanges align their processes as defined by the authorities, then they can operate with ease and will be able to win the confidence of the investors as well.