There are few cases in manuals of the Singapore regulator when placing tokens on a trade platform
will be subject to regulation of the legislation on securities. Such tokens will be instruments of
the capital markets. In particular, it is referred to tokens that are considered equivalent to:
- Shares - tokens certify the right of the owner to participate in company management and
obtaining revenue from the activity of the company;
- Loan - token certify presence of the debt of the token issuer towards their holder.
It should also be noted that this list is not exhaustive.
If the potential crypto exchange acts as an intermediary in purchase and sale of tokens subject to
the legislation on securities, it will be obliged to:
- have the admissible system to manage risks related to operating chosen activity;
- not to perform actions violating the “public order”;
- comply with rules established by the exchange in relation to transparent and fair admission of
the token issuers to trading;
- have necessary financial, technical and human resources to ensure safe work and safeguard of
assets on the platdorm;
- notify about any sufficient changes in operations of platform, as well as about facts of
violation of the legislation;
- maintain reports on transactions on relevant platform;
- have office in Singapore;
- have director and personell suficcient for proposed activities;
- comply with requirements of legislation, in particular requirements regarding protection of the
A license for exchange of cryptocurrencies in Singapore will be required if the cryptocurrency exchange
will operate not only with cryptocurrencies, but also tokens that are subject to securities legislation.