1. Background

 

On 14 November 2025, MAS issued its Guide on the Tokenisation of Capital Markets Products, replacing the Digital Token Offerings guide. The new Guide clarifies how existing securities and financial advisory requirements apply to tokenised capital markets products (CMPs) across issuance, trading, settlement and custody. The framework formalises MAS’ technology-neutral position and tightens expectations for licensing, disclosure and AML/CFT controls.

 

2. Key Areas

Technology-neutral treatment 

 

MAS applies a strict “same activity, same risk, same regulatory outcome” principle. A digital token is a CMP if it meets the Securities and Futures Act (SFA) definition of a share, debenture, CIS unit or derivatives contract. Labels such as “utility token” have no regulatory significance. Misclassification offers no defence.

 

Offers, prospectus requirements and exemptions 

 

Offers of tokenised CMPs must comply with Part 13 SFA on Prospectus Requirements unless an exemption applies (small offers, private placements, institutional or accredited investors). MAS expects offering materials—including exempted offerings—to address tokenisation-specific issues:
 

• Distributed Ledger Technology (DLT) architecture, smart-contract logic, intermediaries

• Ownership rights and legal title

• Custody and private-key control, segregation of client assets

• Technology, cyber, operational and regulatory risks unique to tokenised CMPs

Tokenised CMPs generally fall within MAS’ complex products regime, triggering enhanced knowledge/suitability assessments by distributors.

 

Regulated activities across the tokenisation lifecycle 

 

The Guide identifies when tokenisation roles fall within existing licensing perimeters:

 

• Issuance platforms: dealing in CMPs

• Trading venues: operating an organised market (Approved Exchange/RMO)
  
  
• Custodians: providing custodial services, with “control” including private-key or shard management

• Advisers: financial advisory licensing or exemption may apply

AML/CFT notices remain fully applicable, including CDD, screening, ongoing monitoring, STR obligations and value-transfer requirements. Extraterritorial provisions of the SFA/FAA apply where offshore conduct has a foreseeable effect in Singapore.

 

3. What’s Next?

MAS’ Guide signals that tokenisation will be supervised within the existing regulatory perimeter, not a new one. Financial Institutions should expect:

 

• Higher scrutiny of token classification decisions

• Greater enforcement risk for improper licensing or inadequate disclosures

• Increased expectations for board/senior management oversight of tokenisation initiatives

• Closer alignment between legal, product, technology and compliance functions

• Strengthening of AML/CFT frameworks to incorporate token-specific risk typologies

4. How We Can Help

Capital Governance supports issuers, intermediaries and market operators in aligning their tokenisation initiatives with MAS requirements by:

 

• Evaluate token structures against MAS’ CMP definitions and relevant SFA/FAA/PS Act regimes.

• Develop licensing strategies, including cross-border governance and reliance on group entities

• Strengthen internal policies on issuance governance, key-management, incident response and investor communications.

• Update enterprise-wide ML/TF risk assessments for token-specific exposures.

And more…

Contact Us Now If you would like to discuss how these updates may affect your firm’s AML/CFT/PF compliance framework. Find out more here.