What Is New As Singapore Updates ICO Guidelines?
After becoming one of the first countries to release guidelines for Initial Coin Offerings (ICOs) back in 2017, the Monetary Authority of Singapore (MAS) has reportedly added a new piece of regulation to the original draft document.
In the newly updated draft rule, the MAS stipulates how everyone involved in the ICO cycle should observe Anti Money Laundering (AML) and Counter of Financial Terrorism (CFT) strategies. The rule also follows up on the new Payment Services Bill introduced by Singapore to allow them to track Bitcoin and Ethereum payments.
One of the new rules stipulates that businesses that want to issue ICOs are to obtain a capital market services license from the MSA after meeting the requirements contained in the Securities and Futures Act (SFA). ICO advisory agencies are also required to obtain a license from the regulators in line with the Financial Advisers Act (“FAA”) while cryptocurrency exchanges will do the same in line with the SFA.
ICO Intermediaries To Meet AML and CFT Guidelines
While the original draft document uses a single page to specify how ICO issuers are to meet up with AML and CFT guidelines, the updated draft features two additional pages for this purpose. The MAS reckons that every intermediary in the ICO process has a part to play.
Intermediaries range from the project founders, ICO token exchanges, financial advisers, insurance brokers, and fund managers. The new guideline states that each of these persons must “take appropriate steps to identify, assess and understand their money laundering and terrorism financing (ML/TF) risks.”
When these risks are identified, the individual or firm will have to develop MAS compliant policies that will mitigate the risks. As per the document, such systems can include record-keeping, monitoring, and screening.
In cases where a suspicious transaction is noticed, ICO operators can report with the Suspicious Transaction Reporting Office, or the Commercial Affairs Department of the Singapore Police Force.