FSC issues updated guidance notes on Security Token Offerings and Security Token Trading Systems

On 15 March 2023, the Financial Services Commission (FSC) issued updated guidance notes on the Security Token Offerings and Security Token Trading Systems (the “Guidance Notes”).  It will be recalled that the Guidance Notes were initially issued on 15 June 2020 and were subsequently updated on 23 August 2022 and 15 March 2023, especially following the enactment of the Virtual Asset and Initial Token Offerings Services Act 2021 (“VAITOS Act”) to avoid inconsistencies.  For instance, the Guidance notes clarifies that Security Tokens are the digital representation of Securities as defined under the Securities Act 2005 which should clearly be distinguished from the definition of Virtual Assets (non-securities) as defined under the VAITOS.  The Guidance Notes further elaborates on the licensing obligations for Security Token Trading Systems (such as requirement for insurance cover, minimum stated unimpaired capital etc.)

 

The Guidance Notes can be accessed on the website of the FSC by clicking HERE

 

Should you like to get more information about Security Token Offerings and Security Token Trading Systems, please write to us on bd@mitcoworld.com