The FSC released its STO rules on February 6. The rules are divided into two main sections. In first, they outline the criteria for identifying whether tokens qualify as securities. The rules also describe upcoming regulatory changes for creating and dispersing token securities.

The scope of tokens as securities did not considerably depart from the Fractional Investment Guidelines published by the FSA last year, as expected. It reiterated the idea that if a cryptocurrency qualifies as a financial investment instrument under the Capital Markets Act, then it is a type of security.

It might be claimed that the majority of tokens listed on cryptocurrency exchanges are securities because the present Capital Markets Act does not mandate that securities adopt a certain form. The concept of investment contract securities is meant to be broad and inclusive, and it covers novel securities that are not conventional securities but nonetheless call for investor protection measures.

Visit our official English blog to continue reading about the specifics and our interpretation of the official STO Guidelines.