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Spackman signs MOU with crypto-coin developer for South Korea entertainment sector

CATALIST-listed Spackman Entertainment Group has inked a deal with a partner in its planned initial coin offering (ICO), it said on Wednesday.

The tie-up with South Korean cryptocurrency developer Project Talent is meant to launch utility tokens, dubbed "K Coins", that can be used for future access to Spackman products and services, such as merchandise and concerts.

Project Talent - which has ties to Singapore-based cryptocurrency exchange Kyber Network - would work to develop both the platform and tokens for K Coins, under the proposed partnership in the non-binding memorandum of understanding with Spackman.

Richard Lee, Spackman's executive director and interim chief executive, said in a statement that the deal "shall enable us to leverage blockchain technology and the group's content and talent management platform" for a cryptocurrency in the South Korean entertainment industry.

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Spackman announced in February that it intended to offer K Coins through an ICO.

It said then that it would seek professional legal advice to make sure that the fund-raising round complied with all applicable rules in Singapore, including laws on money laundering and terrorism financing.

The company is eyeing utility tokens, which are used to purchase goods or services, rather than security tokens, which are more closely related to tradable assets.

Cryptocurrency refers to digital currencies based on encryption techniques, which are not backed by fiat money or regulated by a central bank.

Monetary regulators worldwide have put cryptocurrency under tougher scrutiny amid concerns such as price instability, vulnerability to hacking theft, and the illicit potential for money laundering and terrorism financing.

Monetary Authority of Singapore (MAS) director Ravi Menon said recently that the Republic's central bank has so far chosen not to regulate directly such tokens, but will continue to monitor developments.

"MAS assesses that the nature and scale of crypto token activities in Singapore do not currently pose a significant risk to financial stability. But this situation could change, and so we are closely watching this space," he told a payments conference in mid-March.

Mr Menon had previously stated in January that the MAS would shy away from issuing digital currencies to the public for now.