New SGX guidelines for listed firms planning initial coin offerings, Latest Business News - The New Paper

New SGX guidelines for listed firms planning initial coin offerings

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Listed companies planning to conduct an initial coin offering (ICO) have a new set of guidelines to follow from the Singapore Exchange.

The move is in response to questions regarding such offerings, noted Mr Tan Boon Gin, chief executive of Singapore Exchange Regulation (SGX RegCo).

"First off the bat, it is important to make clear that even if an SGX-listed company is the issuer of a digital token, those tokens are not listed on SGX," he added in a column.

"Therefore, SGX's rules would cover only the company and not the tokens nor the holder of the tokens."

Listed issuers intending to hold an ICO must first consult SGX RegCo and provide legal opinion on the digital tokens as well as an auditor's opinion on the offering's accounting treatment.

The SGX will also provide a checklist on compliance matters to be addressed.

When the ICO is announced, the company must include disclosures so that shareholders of the issuer are informed of the rationale for the offering and its risks.

It must also disclose what the funds raised will be used for, any impact on shareholder rights, the accounting and valuation treatments for the ICO and any financial impact on the issuer.

In addition, the company must address money laundering and terrorist financing risks.

After the ICO, SGX RegCo expects the listed issuer to keep its shareholders informed of relevant information, the development of the offering and digital tokens on a timely basis, as well as the use of the proceeds. - THE STRAITS TIMES