The Monetary Authority of Singapore has warned an initial coin offering (ICO) issuer not to proceed with its securities token offering in Singapore until it complies with the Securities and Futures Act.

The issuer had intended to rely on a part of the Act that allows an issuer to make an offer of securities to accredited investors without sending off a prospectus to the regulator. This exemption is, however subject to certain conditions, including a requirement not to advertise the offer. The issuer in this case failed to comply with the advertising restriction when its legal advisers posted something publicly on LinkedIn that called attention to the offer. Heeding the regulator's warning, it has suspended its global offering of securities tokens. All offers of securities tokens must comply with all applicable securities laws.

HNW investors who invest in digital token offerings might suffer from fraud and are never able to find out how credible the offerings are because their valuations are highly speculative and they lack proven track records. The regulator is therefore reminding consumers to understand the benefits and risks of any product or service before committing to such investments.