Nature of Security Tokens

What kind of digital tokens are securities under Singapore law?


  • Digital tokens which fall within the definition of “securities” under the Securities and Futures Act (Cap. 289).

    "Digital tokens which fall within the definition of “securities” under the Securities and Futures Act (Cap. 289), including the following:
    (a) shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership;
    (b) debentures; or
    (c) any other product or class of products as may be prescribed,
    but not including -
    (i) any unit of a collective investment scheme;
    (ii) any bill of exchange;
    (iii) any certificate of deposit issued by a bank or finance company, whether situated in Singapore or elsewhere; or
    (iv) such other product or class of products as may be prescribed."

    Section 2(1) of the Securities and Futures Act (Cap. 289)


    If the investment products made up of cryptocurrencies and/or digital tokens constitute capital market products under the Securities and Futures Act (Cap. 289).

    Yes, if the investment products made up of cryptocurrencies and/or digital tokens constitute capital market products under the Securities and Futures Act (Cap. 289), including securities, units in collective investment schemes, derivatives contracts, and spot foreign exchange contracts for the purposes of leveraged foreign exchange trading. Securities would include shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership, and debentures.

    Section 2(1) of the Securities and Futures Act (Cap. 289)

FinReg business tip

Broadly speaking, if the investment products made up of cryptocurrencies constitute shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership, and debentures, they would be considered securities under the SFA.