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Token Sale Agreement Template for Singapore

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Key Requirements PROMPT example:

Token Sale Agreement

"I need a Token Sale Agreement for our Singapore-based gaming platform to issue utility tokens to qualified investors, with a planned distribution date of March 2025 and specific vesting periods for early investors."

What is a Token Sale Agreement?

The Token Sale Agreement is essential for any entity conducting a token sale in Singapore. This document ensures compliance with Singapore's comprehensive digital asset regulations, including the Payment Services Act 2019 and MAS Guidelines on Digital Token Offerings. It provides a structured framework for token issuance, detailing the rights and obligations of both issuers and purchasers, token specifications, sale terms, distribution mechanisms, and compliance requirements. The agreement is particularly crucial given Singapore's position as a leading cryptocurrency and blockchain hub, requiring careful attention to regulatory requirements and investor protection measures.

What sections should be included in a Token Sale Agreement?

1. Parties: Identification of token issuer and purchaser

2. Background: Context of the token sale and project overview

3. Definitions: Key terms used throughout the agreement including token specifications, smart contract details, and regulatory definitions

4. Token Description: Detailed specifications of the tokens being sold, including technical characteristics and classification

5. Purchase Price and Payment Terms: Token pricing, payment methods, settlement terms, and refund conditions

6. Token Distribution: Timeline and mechanism for token distribution, including minting and delivery process

7. Representations and Warranties: Legal assurances from both parties regarding capacity, authority, and compliance

8. Compliance Obligations: AML/KYC requirements, regulatory compliance, and ongoing obligations

9. Termination: Circumstances under which the agreement can be terminated and consequences

10. Governing Law and Jurisdiction: Singapore law as governing law and jurisdiction for dispute resolution

What sections are optional to include in a Token Sale Agreement?

1. Lock-up Period: Optional provisions for restrictions on token transfer or sale during specified periods

2. Token Utility: Detailed description of token functionality and use cases within the platform

3. Governance Rights: Provisions related to token holder voting rights and governance participation

4. Secondary Market Trading: Terms related to listing and trading of tokens on secondary markets

5. Smart Contract Upgrades: Provisions for updating or modifying the underlying smart contract

What schedules should be included in a Token Sale Agreement?

1. Token Economics Schedule: Detailed breakdown of token distribution, vesting schedules, and economic model

2. Technical Specification Schedule: Technical details of the token implementation and smart contract architecture

3. KYC/AML Procedures Schedule: Detailed compliance procedures and requirements for token purchase

4. Risk Factors Schedule: Comprehensive list of investment, technical, regulatory, and market risks

5. Project Roadmap Schedule: Development timeline, milestones, and implementation schedule

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions







































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Industries

Securities and Futures Act (SFA): Primary legislation governing capital markets, securities, and investment products in Singapore. Determines if tokens qualify as capital markets products requiring regulatory oversight.

Payment Services Act 2019 (PSA): Regulatory framework for payment systems and payment service providers, including digital payment token services. Sets licensing requirements for token-related activities.

Financial Advisers Act (FAA): Regulates financial advisory services, relevant if the token sale involves financial advice or recommendations.

MAS Guidelines on Digital Token Offerings: Specific guidelines issued by the Monetary Authority of Singapore regarding the offering and issuance of digital tokens.

PSA Licensing Framework for Digital Payment Token Services: Detailed requirements for obtaining and maintaining licenses for digital payment token services under the Payment Services Act.

MAS AML/CFT Regulations: Anti-Money Laundering and Countering the Financing of Terrorism regulations specific to financial services and digital tokens.

MAS Notice PSN02: Specific notice on Prevention of Money Laundering and Countering the Financing of Terrorism for payment service providers.

Personal Data Protection Act 2012 (PDPA): Governs the collection, use, and disclosure of personal data in Singapore, relevant for KYC processes in token sales.

Contract Law (Amendment) Act: General contract law principles applicable to token sale agreements and related contractual obligations.

Electronic Transactions Act: Provides legal framework for electronic transactions and digital signatures, relevant for digital token sales.

Consumer Protection (Fair Trading) Act: Protects consumer interests and ensures fair trading practices in token sales to retail investors.

Income Tax Act: Tax implications and obligations related to token sales and cryptocurrency transactions.

Goods and Services Tax Act: GST considerations and requirements applicable to token sales and related services.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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