Singapore is the world top with a financial center, international settlements. It has attracted attention as a fintech developed country. By utilizing the advantage of being a global financial market, the country is also famous as the center of ICO. Although some investors regard Singapore as “ICO Haven”, recently the Singapore government issued guidelines on some ICO.
1.Singapore's Central Bank issues new guidelines on ICOs
On November 15, in the 13-page document titled “A guide to Digital Token Offerings”, the Monetary Authority of Singapore (MAS) together with Singapore’s central bank and financial regulator claimed that:
”Offers or issues of digital tokens may be regulated by MAS if the digital tokens are capital markets products under the Securities and Futures Act (SFA). Capital markets products include any securities, futures contracts and contracts or arrangements for purposes of leveraged foreign exchange trading.”
These new guidelines of MAS are in response to previous comments of the Central Bank that ICOs should be regulated under the SFA. The document also provides a selection of case studies to illustrate how the securities laws administered by MAS (may apply). These are “not indicative or conclusive of how the securities laws will apply to a particular case involving an offer or issue of digital tokens”.
In August, Singapore was seeing an increase in the number of token sales as a way to raise funds. There was fear in regards to the fact that digital tokens were growing beyond a virtual currency.
Fund raising through tokens has the advantage of anonymous trading functions and the ability to raise a large amount of funds in a short period of time, but it also has challenges such as the risk of a token collapse and insufficient protection of investors. Therefore, the financial regulator announced that it was going to regulate the issuance of digital tokens.
This time, the Singapore government regulates some digital tokens to protect ICO activities. Singapore, which is actively investing in fintech related fields, has been attracting attention from around the world as an attractive country for blockchain startup companies.
2. Singapore launches the first blockchain digital trade platform for SMEs
On November 15, Prudential - a giant in insurance market has joined forces with a Singapore info-communications company – Starhub in order to launch a digital trade platform based on Blockchain Technology for small and medium-sized enterprises.
Digital trade platform is an online framework that supports social and market interaction.
The platform is called Fasttrack Trade, which is a digital B2B marketplace. It will be ready in the first quarter of 2018. With this platform, small and medium-sized enterprises will be easily able to find business partners and distributors and make payments. Additionally they will be able to track goods as well as buy insurance.
The partnership gives Starhub a chance to offer business customers access to services through Fasttrack Trade. As well as giving Prudential an opportunity to provide insurance services. Alternative financing options will also be available via peer-to-peer lender funding societies.
Fintech startup Cites Gestion is the company developing the platform whereas Prudential is the financer.
Prudential is creating a digital ecosystem based on cross-industry collaboration that will transform commerce and promote the growth of enterprises.
Thanks to Blockchain technology, every transaction on Fasttrack Trade is recorded and traceable. It’s not only safer but also faster and cheaper for enterprises to conduct trade transactions and access financing.
Starhub and Prudential also expect more service providers in fields such as business intelligence, payments and logistics to join Fasttrack Trade. Not only that, but Fasttrack Trade could be expanded to other small and medium-sized enterprises outside Singapore.
The FinTech industry continues to grow dramatically in Southeast Asia including Singapore, and we, Wrapious Ltd. is trying to play a part of this growth. While the FinTech industry continues to make dramatic growth in Southeast Asia including Singapore, our company Wrapious Ltd., as a leader who plays a part in this growth, is aiming to build a platform that anyone around the world can use the fair evaluation system and innovation service.