The Singapore Exchange (SGX) has released the list of rules for the companies which are publicly listed and are planning of the conduction of initial coin offering (ICOs).
The CEO of the regulatory subsidiary, SGX RegCo of the stock exchange, Tan Boon Gin stated in a column which was published on Thursday that any token which is launched via an ICO does not get listed on the SGX.
The rules released by the exchange are particularly applicable only to the companies themselves.
According to the guidelines, any company which is listed on the SGX and is planning to hold an ICO will have to consult the SGX RegCo on a prior basis. Moreover the company also has to provide an auditor’s opinion as well as a legal opinion, by reputed firms.
This would be regarding the treatment of the ICO for the accounting purposes as well for the nature of the tokens.
Furthermore, the companies are also required to make certain disclosures, which include the rationale behind the ICO and the risks which are involved.
Some of the other disclosures include the methods to raise the funds, planning of the KYC along with the impact the ICO will have on the rights of the existing shareholders and the anti-laundering checks which the company will conduct.
The companies also need to ensure that there is proper accounting of the ICOs in their financial statements and also that all the risks that are associated have been addressed.
If the issued tokens are taken to be securities then as per the Securities and Future Act (SFA) the issuers are also required to do the completion of the registration of the prospectus along with the procedures of the licensing.
Under the same act, in order to carry out the ICO, the firms may also be required to form a subsidiary.
Source: CoinDesk, CryptoTown
