In Brief:
- Singapore’s central bank, MAS, issued guidelines telling crypto service providers to not market their services to the public.
- Crypto firms should avoid using third parties such as social media influencers or third-party websites to promote their DPT service.
- The guidelines are applicable to all firms, banks, and financial institutions offering DPT services in Singapore.
The Monetary Authority of Singapore(MAS) issued its latest guidelines asking crypto firms to not promote their services to the general public in Singapore.
The MAS has repeatedly warned the public that trading digital payment tokens (DPTs), also known as cryptocurrencies, is extremely risky and not suitable for the public.
DPT service providers should not depict DPT trading in a way that minimizes the high risks of DPT trading, according to the guidelines.
The companies are from now on not allowed to promote their DPT services in public areas in Singapore or through any other media directed at Singapore’s general public.
This refers to any type of promotional materials in public places like “Singapore public transport, public transport venues, broadcast media or periodical publications, third party websites, social media platforms, public events or roadshows.”
DPT service providers can promote their services on their own company site, mobile apps, or official social media pages.
The service providers should also avoid using third parties such as social media influencers or third-party websites to promote their crypto service to the public.
Physical ATMs in public areas in Singapore should not be made available by DPT service providers to facilitate public access to their crypto services.
The guidelines are applicable to all companies, banks, and financial institutions offering crypto services in Singapore, even those licensed under Singapore’s Payment Services Act.
MAS emphasizes that DPT service providers must operate with the awareness that DPT trading is not appropriate for the general public.
Loo Siew Yee, MAS Assistant Managing Director, stated “MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases.”
Authorities in various countries are actively regulating crypto-related ads. Just a week back the Advertising Standards Authority (ASA), U.K’s Advertising regulatory authority identified two ads from Crypto.com as ‘misleading’ and ‘irresponsible’ and banned their promotions. The ads were deemed deceptive and manipulative since false information about cryptocurrency would lure consumers.
