Singapore Shuts Down a Security Token Offering for Non-compliance

The Monetary Authority of Singapore (MAS) has shut down a security token offering (STO) for a “regulatory breach.” MAS said the issuer in question failed to comply with advertising restrictions. Specifically, the STOs legal advisors promoted the offering on LinkedIn calling attention to the offering.

MAS did not identify the issuer. The STO in question is a global offering. According to The Straits Times the issuer in question is Jules Corp, a Singapore-based education-software technology company.

MAS noted that it has cautioned initial coin offering (ICO) issuers not to proceed with any security offering unless it is in full compliance of regulation under the Securities and Futures Act (SFA). MAS has published a guide to token offerings to provide guidance on compliant offerings.

Under the SFA, an issuer may offer securities, or security tokens, to accredited investors without registering a prospectus with MAS. This exemption requires adherence to certain conditions – including a ban on advertising.