ICO regulation is an inevitable trend, and the Central Bank of Singapore has issued ICO risk warnings one after another

Singapore’s central bank has issued a warning to investors about the risks of ICOs.

The Monetary Authority of Singapore (MAS) has issued a new notice in conjunction with the Commercial Affairs Department of Singapore, the city-state’s police arm, advising potential investors to investigate and understand the risks associated with token sales.

Among the advice provided to investors is to only invest in companies whose activities are licensed by MAS.

The notice stated:

“MAS administers laws that require disclosure of information about investment products offered to consumers. MAS-regulated entities are also subject to regulations designed to ensure that they treat consumers fairly. If consumers engage in investment activities with non-MAS-regulated entities, this would mean forfeiting MAS’ protection.”

The statement highlighted the risks of ICOs, including the potential for a lack of market liquidity, a high probability of startup failure, and the potential for fraud.

MAS said consumers “should report to the police” if they suspect a token investment program may be fraudulent.

The announcement comes just a week after the MAS issued a statement detailing that certain token sales amount to securities offerings under the agency’s regulations, a position similar to that previously announced by the U.S. Securities and Exchange Commission.

ICOs have steadily gained traction in recent months, with nearly $1.7 billion raised so far, including more than $500 million in the last month alone, according to the Coindesk ICO tracking tool.