MAS updates guide on the tokenization of capital markets products
Summary
The Monetary Authority of Singapore (MAS) has updated its regulatory guide on tokenized capital markets products (CMPs), clarifying how securities laws apply to digital tokens. The revised guide, released on 14 November 2025, replaces the earlier Digital Token Offerings (DTO) Guide and reflects evolving market practices and technologies.
Context
Originally published in 2017 and updated in 2020, the DTO Guide provided guidance on digital token offerings under MAS-administered laws. The latest update responds to growing interest in tokenizing CMPs and the expansion of token-related activities across the capital markets value chain, including trading, settlement, and custody.
Key takeaways
- Technology-Neutral Approach: MAS continues to assess tokenized CMPs based on their economic substance rather than technological form.
- Regulatory Scope: Tokenised CMPs are subject to the same requirements under the Securities and Futures Act (SFA) and Financial Advisers Act (FAA) as traditional CMPs.
- Disclosure Requirements: Issuers must disclose token-specific risks and characteristics, including DLT architecture, smart contracts, custody arrangements, and legal rights.
- Licensing Obligations: Entities involved in issuance, trading, custody, or advisory services related to tokenised CMPs may require MAS licences unless exempted.
- AML/CFT Compliance: MAS reiterates the applicability of anti-money laundering and counter-terrorism financing obligations to token-related activities.
- Extra-Territorial Reach: MAS regulations may apply to overseas activities with substantial effects in Singapore.
- Case Studies: The guide includes 17 illustrative case studies to help entities assess whether their tokens qualify as CMPs.
Next steps
- Entities planning to issue or offer digital tokens in Singapore should:
- Seek legal advice from Singapore-qualified counsel.
- Review the guide and case studies to determine regulatory obligations.
- If necessary, submit an enquiry to MAS using the checklist in Appendix 3.
- MAS may issue further updates to the guide as tokenization practices evolve.
SC announces first cohort of Regulatory Sandbox participants
The Securities Commission Malaysia (SC) has selected six participants for the inaugural cohort of its Regulatory Sandbox, aimed at fostering innovation in the capital market. The sandbox provides a controlled environment for testing new products and services that enhance market vibrancy and inclusiveness.
Context
The Regulatory Sandbox was launched during the SCxSC Fintech Summit in 2024 as part of SC’s innovation toolkit. Applications for participation were open between 15 April and 31 May 2025, attracting strong interest from diverse market players.
Key takeaways
- Participants and Themes:
- Alternative Real Estate Investments: Wahed X Sdn Bhd (Wahed) and Urban NX Sdn Bhd (Urby)
- Secondary Market Innovation: Kapital DX Sdn Bhd (KLDX) and Pitch Platforms Sdn Bhd (PSTX 2.0)
- Alternative Financing: Virtual Economy Technology Sdn Bhd (V Systems) and PeerHive (M) Sdn Bhd (PeerHive)
- Several participants will leverage advanced data analytics and blockchain to improve due diligence and introduce new operating models.
- Testing will occur over approximately 12 months, starting in two batches: January 2026 or July 2026, depending on readiness.
- The sandbox aims to balance innovation with investor protection, supporting responsible experimentation under defined parameters.
Next steps
- Participants will begin testing in early or mid-2026.
- Corporations with innovative business models can engage with the SC through the Alliance of FinTech Community (aFINity) by submitting proposals to afinity@seccom.com.my.
- Further details on the sandbox framework are available via SC’s official resources.
The Australian government publishes its National AI Plan
The Australian government announces that the Australian government is releasing the National AI Plan, ‘a comprehensive roadmap to build an AI-enabled economy that harnesses the full potential of artificial intelligence for the benefit of all Australians’.
Further detail
The National AI Plan has three goals:
- Capturing the opportunities, including attracting investment in Australia’s digital and physical infrastructure, supporting local capability, and positioning Australia as a leading destination for future AI investment.
- Spreading the benefits, including improving public services, supporting AI adoption and building skills across the economy, including for not-for-profits, universities, schools, TAFEs and community organisations.
- Keeping Australians safe, including through setting up the recently announced AI Safety Institute to monitor, test and share information on emerging AI capabilities, risks and harms, which builds on our commitment to robust legal, regulatory, and ethical frameworks and engaging internationally to protect rights and build trust.
The plan noted that Australia has strong protections in place to address many risks, but the technology is fast-moving and regulation must keep pace. That’s why the government continues to assess the suitability of existing laws in the context of AI. The government is taking action to identify and understand how AI risks deal with specific harms, including reviews and regulations relating to online harms, copyright law, AI use in healthcare and consumer protections.
The announcement was backed by a $29.9 million commitment to establish the AI Safety Institute in early 2026 to ensure that the government is monitoring and responding to risks, supporting agencies and regulators.
Stated the Minister of Science: ‘The National AI Plan is about making sure technology serves Australians, not the other way around…As the technology continues to evolve, we will continue to refine and strengthen this plan to seize new opportunities and act decisively to keep Australians safe”.
The Business Council of Australia called the plan “an important step forward [that] charts a clear direction for how Australia can embrace AI to boost productivity, sharpen our competitiveness and raise living standards”.
