Offers of Digital Tokens (DTs)

There is no statutory definition of “utility tokens” in Singapore. Instead, the key analysis is whether the token contains elements that point towards it being a regulated product such that issuing or dealing in the tokens requires compliance with specific regulations. Key examples are (i) whether the tokens are considered as “capital markets products” under the Securities and Futures Act 2001, and (ii) whether the tokens are considered “e-money” or “digital payment tokens” under the Payment Services Act 2019. For example, a token that entitles the holder to a share in the profits of an entity or a token that represents a debt claim on an entity would be considered a capital markets product.