Singapore’s Stock Exchange Clarifies Rules for Listed Firms Issuing ICOs

Singapore Exchange (SGX) has clarified the rules for publicly listed companies planning to conduct initial coin offerings (ICOs).

Singapore Exchange (SGX) has clarified the rules for publicly listed companies planning to conduct initial coin offerings (ICOs).

In a column published Thursday, Tan Boon Gin, CEO of the stock exchange’s regulatory subsidiary, SGX RegCo, stressed that any tokens launched in an ICO are not listed on the SGX and that these rules are applicable only for the companies themselves.

As per the guidelines, any listed company planning to hold an ICO is required to consult with SGX RegCo in advance, as well as provide a legal opinion on the nature of tokens and an auditor’s opinion on how the ICO should be treated for accounting – both from “reputable” firms.

Companies are also required to make certain disclosures, including the rationale behind the ICO, the risks involved, how the raised funds would be used, planned know-your-customer (KYC) and anti-money laundering (AML) checks, and any impact on existing shareholders’ rights.

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