NFT Minting and Transactions

Is NFT minting regulated in Singapore?

It does not seem to be regulated in Singapore. However, if the NFT in question has the characteristics of a security or other capital market product, it may be regulated under the Securities and Futures Act.

According to MAS (Parliamentary Replies),
last revised on 15 February 2022

1 Non-fungible tokens (NFTs) are a form of digital token, where each token has distinct and unique features that are verified and secured by blockchain technology. NFTs are still a relatively new development in the technology space. While NFTs can be used to represent any underlying asset, they have for now been mainly used to tokenise digital art and other collectibles.

MAS does not and cannot possibly regulate all things or products that people choose to invest their money in. We consider the substance of an asset when assessing whether a product or activity should come under MAS’ regulatory remit. MAS does not currently regulate NFTs given the nature of their underlying assets, such as the few examples earlier. This is also the stance taken by most other leading jurisdictions.

3 More fundamentally, with regard to digital tokens such as NFTs, MAS takes a tech-neutral stance and “looks through” to the underlying characteristics of the token to determine if it is to be regulated by MAS. Should an NFT have the characteristics of a capital markets product under the Securities and Futures Act (SFA), it will be subject to MAS’ regulatory requirements. For example, should an NFT be structured to represent rights to a portfolio of listed shares, it will like other collective investment schemes be subject to prospectus requirements, licensing and business conduct requirements1.