Tax on crypto transactions

How are proceeds from a token sale taxed in Singapore?

"Generally, the ICO company is treated to be carrying on a trade of trading in payment tokens and the tokens will be treated as its trading stock. Hence, the proceeds from the issuance of payment tokens will be taxable.

The issuance of a utility token comes with an obligation for the issuer to provide a service in the future. Hence, the proceeds from the issuance represent consideration for the payment of the service, and is taxable, being revenue in nature. 

The issuance of security tokens confers certain contractual rights and economic entitlements to the investor.These can be akin to those conferred to an equity shareholder, a debt holder or other holder of the securities or investment assets/instruments. In this respect, the proceeds from the issuance of security token is akin to those from the issuance of securities or other investment assets and is thus capital in nature and not taxable."

e-Tax Guide on Income Tax Treatment of Digital Tokens (9 October 2020)